556 - COMMONWEALTH OF PENNSYLVANIA LEGISLATIVE

COMMONWEALTH OF PENNSYLVANIA

LEGISLATIVE JOURNAL

I

I ": t i

love and mercy. We desire to be the best legislators in the history of our I LOCAL. GOVERNMENT.

Your quickening power. Make us feel Your presence in a new and powerful way.

? Come into this chamber on wings of healing: Touch all of

i us with Your finger of mercy; indwell Our with Your

I ..I truth; cause our impulses to move only in the direction of Your

TUESDAY, MARCH 30,1993

SESSION OF 1993 177TH OF THE GENERAL ASSEMBLY No. 20

HB 243, PN 1175 (Amended) By Rep. PISTELLA

An Act amending the act of December 31, 1965 (P.L,1257, No.5 I I ) , known as The Local Tax Enabling Act, further providing for collection of taxes.

I P L E D G E OF ALLEGIANCE I CONSERVATION

HOUSE OF REPRESENTATIVES The House convened at 10 a.m., e.s.t.

THE SPEAKER (H. WILLIAM DeWEESE) PRESIDING

P R A Y E R

REV. CLYDE W. ROACH, Chaplain of the House of 7 Representatives, from Hamsburg, Pennsylvania, offered the

4 1 < , . following prayer:

I -1

Let us pray: Dear Father in Heaven, we laud and magnify Your holy and

righteous name. You are wolthy of all praise and honor, and we are most grateful for this oppo~tu~llty to come into Your divine presence, even though we are only sinners and saved by Your grace, which is sufficient to cover all of our sins and

I transgressions. Will You not come into our midst this morning with all of

Nation. If we allow You to control our lives and our destinies, countless generations will rise up to call You blessed.

In Your dear name we pray. Amen.

(The Pledge of Allegiance was recited by members and I HB 437, PN 1176 (Amended) visitors.) By REP. PISTELLA

Mr. Speaker, 1 would ask for leave for loday only for the gentleman from Allegheny, Mr. OLASZ.

The SPEAKER The Chair thanks the gentleman. The Chair recognizes the gentleman, Mr. Penel, for

Republican leaves of absence. Mr. PERZEL. Thank you, Mr. Speaker. We would like to ask for a leave of absence for the day for

the gentlelady from Chester, ME. TAYLOR The SPEAKER The Chair thanks the gentleman.

MASTER ROLL C A L L

The SPEAKER The Chair is about to take the master roll. Members will proceed to vote,

(A roll-call vote was taken, but due to a malfunction the vote was not recorded. See later roll call.)

BILLS R E P O R T E D FROM COMMITTEES, CONSIDERED FIRST TIME, AND TABLED

HB 338, PN 365 By Rep. GEORGE An Act amending the act of June 23, 1982 (P.L.597, No.170),

known as the Wild Resource Conservation Act, further providing for the Wild Resource Conservation Board.

An Act amending the act of July 7, 1947 ;~.L.i368,~0.542), J O U R N A L APPROVAL POSTPONED known as the Real Estate Tax Sale Law, further providing for the

entry, extension and discharge of tax claims; and making repeals. The SPEAKER. Without objection, the approval of the

Journal of Monday, March 29, 1993, will be postponed until printed. The Chair hears no objection.

LOCAL GOVERNMENT.

REPUBLICAN C A U C U S

LEAVES OF ABSENCE

ihr SPEAKER. The Chair recognizes the gentleman, Mr. Steighner, for leaves of absence.

Mr. STEIGHNER. Thank you, Mr. Speaker.

The SPEAKER. The Chair recognizes the gentleman, Mr. Perzel, for purposes of an announcement.

Mr. PERZEL. Thank you, Mr. Speaker. The Republicans will caucus in the minority caucus room

immediately upon the recess.

--

LEGISLATIVE JOURNAL - HOUSE MARCH 30

The SPEAKER There being no need for a Democratic caucus, the House will reconveae at 11 am.

RECESS

The SPEAKER This House stands in recess.

order.

SENATE MESSAGE

BImm O l d k k Merry eOy0 ~ Micblovic stain B m Oadw Micanic %ma BUM G ~ i p r Milulich Bwb Hduskr Milla Sroil BulLoviU H.onr M W .%a ~ v a m H.rlrr M u d l ~ WQ i

C

AFTER RECESS

Tbe time of recess having expired the House was called to

ADJOURNMENT RESOLUTION FOR CONCURRENCE

ca&bhca H=& Nickd Strictmrtta CM H- Nw stur* c.rmc hlcv

Hamrn 0'B"en Sum Hcnbn, O'Dmaell T d

Tbe clerk of the Senate, being introduced, presented the following e x m from the Journal of the Senate, which was read as follows:

In the Senate March 29, 1993

RESOLVED. (the House of Representatives concurring), That when the Senate adjourns this week it reconvene on Monday, April 19, 1993, unless sooner recalled by the President Pro Tempore of the Senate; and be it further

RESOLVED, That when the House of Representatives adjourns this week it reconvene on Monday, April 19, 1993, unless sooner recalled by the Speaker of the House of Representatives.

Ordered, That the clerk present the same to the House of Representatives for its concurrence.

On the question, Will the House concur in the resolution of the Senate? Resolution was concurred i n Ordered, That the clerk inform the Senate accordingly.

MASTER ROLL CALL RETAKEN

The SPEAKER The Chair would like to ask for the indulgence of the membership. The clerk has indicated that the master roll machine malhnctioned. We will have to take it one more time.

The Chair is about to call the master mll. The members will proceed to vote.

The following roll call was recorded:

Fsrso Farmer Fee Fichter Fleagle nick F r r e ~ n O d e O m o n Oeiei Gmrge Oerlaeh GigliaUi

R w h t o n i SItber Saunnan Saylor Ssh& Schuler Sc r imt i Semmel Senfini Smith B. Smith, S. H. Snyder, D. W.

cl,& Cohq L. I. Cobm M. Coldella C o l ~ camell Corrigrn Cavell sy C w Daley DcLuu Danpsey Dent

Derrmdy Dmatuai D w huhun Eldf Evrnr Fdrebld Fajt

-

T d l o T"sh Truo Tulli Uliam V m van Homc Vem ViWi waugh William V.

W0g.n W&& W* D. R .- W"gbt, U N. YMd.initl Ywcic zup

NOT VOTING4

LEAVES CANCELED-I

Taylor, E. Z

BILLS REMOVED FROM TABLE

The SPEAKER The Chair recognizes the gentleman from Allegheny County, Mr. Itkin, the majority leader.

Mr. ITKIN. Mr. Speaker, I move that the following bills be removed from the table:

HB 163; HB 958; HB 145; and HB 41 1.

On the question, Will the House agree to the motion? Motion was agreed to.

1993 LEGISLATIVE

BILLS RECOMMITTED

The SPEAKER The Chair reccgnizes the majority leader, Mr. Ii..

Mr. ITKIN. Mr. Speaker, I move that the following bills be recommitted to the Appropriations Committee:

HB 958; HB 145; and HB 411.


MEMBER'S PRESENCE RECORDED

The SPEAKER The Chair recognizes the gentleman, Mr. Gruppo, for the purpose of an announcement.

Mr. GRUPPO. Not really an announcement, unless you want to know that I just returned to town. . I was absent yesterday, but I was not on the master mll this morning. Could you please put me on? Thank you.

The SPEAKER The Chair thanks the gentleman. His remarks will he spread upon the record, and you are on the master roll.

CALENDAR

RESOLUTIONS

Mr. NAILOR called up HR 33, PN 659, entitled:

A Resolution recognizing the accomplishment of Lend A Hand.

. On the question, Will the House adopt the resolution?


YEAS-20 1

Acastn Fargo Linton Ryan Adolph Farmer Lloyd Slntooi Allen Fep h c y k Sather Awl1 Fichter Lynch S a u m M m g Fleagle Mailland Saylor

Flick Manderino Scb- 0" Freeinan Markwek Schuler BonisIo Gamble Maniso &timenti Bebkalones Camon Masland Swmel Belardi Geist Mayemik Sersfini Bdfanti George McCall Smith, B. B iml in Gerlsch McGeehan Smith. S. H. Bishop Giglidti McNally Snyder, D. W. Blmm Gladeck Mdio Staback BOY= Gwlshall Merry SLllrs B m Gordner Michlovlc Sraelman Bunt Gruitza Miconie Steighner

G ~ ~ P P O Mihalich Steil Butkwitz .a Z Haluska

Miller Stem Hanna Mwndy Stetler

Caltagimne Harley Murphy Stish Cappbianca Hasay Nailor Strittmatter Cam Heckler Nickol Studs

JOURNAL - HOUSE 513

h u e NYF. Hennay vI*im

Sum c a d y Eknnan T.Ogretti ck- H d w O'MI Taylor, 1. Chdwisk H w Oliver Thanu Civm Hughcs PesLcl Ti* clulc ~utchinroll pari ~anlimm C ~ F Itkin PMru T d l o Coben, L. 1. Isdlowiffi F'eumc Tncb Cobm. M. lnnra Pdtit T n r colddh I d i n Pldllip Tulli C o l a b lasphr F'icml. Ulim Cornell Kim WWI. v.na Conigsn K w n i c Pifts Vm H m o COW~II ~ d l e r nrt~~ vam W K ~ e y Ptcswn Vitlli Cvrry Kiag b e Wugb Ddey KiMand Reba William hhu KFebs RdWd W w Dsmpocy KuLwicb Richardmcl wrPn.& Dcnt hGmtt . Ricga Wrighs D. R IXmDdy Laub Rim W-5 M. N. ~ o n a h c ~ i h u $ h l i ~ ~obats ~ ~ t s

Lawlaa % Ynveic Dlnbm Ledma Roel%ck zus Egdf Lee Rahm E,, ~ c b m hWar, ~ d ~ h i ~ d ~cscwie Woy spcllta F i t Levdauk~ W

NAYS4

NOT VOTING-0

EXCUSED-2

Olae Taylor, E. Z.

The question was determined in the aflkmtive, and the resolution was w e d ,

VOTE CORRECTION

The SPEAKER The Chair recognizes the gentleman, Mr. Murphy, from Allegheny CoYnty, who asks for recognition.

Mr. W H Y . Mr. Speaker, yesterday on HB 907 my switch malhctioned. I would like to be registetcd in the affirmative.

The SPEAKER The gentleman's remarks will be spread upon the record.

RESOLUTIONS CONTINUED

Mr. BLAUM called up HR 35, PN 667, entitled:

A Resolution designating the month of April 1993 as "Sexual Assault Awareness Month."

On the question, Will the House adopt the resolution?


YEAS-200 Acosta Fargo Lloyd Ry.n Adolph Farmer Lucyk SsnIoni Allen Fee Lynch Sather Argall Ficbter Maitland Saurmso

Amvamng BEkI

B d e y Bsuirao B e b b h e s Belardi Bdf& Bimdin Bishop Blaum coves B m Bunt Burh Butkovik Buxton Caltagimne c+pbianca Cam Canme Cawley C*uar Chamvick C ivm Clark Clymer Coheo, L. I. Cabal, M. ColafeUa Cdaino Comsll -$.n Cavell Coy C u w Ddey DeLuca k w = Y Dmt Demody DoMtueei Khuce Durham w

LEGISLATIVE JOURNAL - HOUSE

neagle Mandnino Flick Markosek F ~ p m s n Mard", Gamble Marland Ganoon Mayemik G i s t McCall Gmrge McGeehaa Gerlsch McNally Gigliati Melio Gladak MrnY Godsball Michlovic Gordner Mieolde G ~ i l m Mibalisb cnyrp0 Miller Haluska Mundy Hsnna Murphy Harley Nailor H ~ = Y Nick01 Heckler N ~ c e H m e s s e ~ O'Brien Hennsn O'Donoell Henhey Oliver H a r Pazzl Hughes Pesci Hutshinson Pdraru ltkio Pccmne Jadlavisc Peltit Jamlin Phillips Josephn Picmla Kaiser Pistells Kamnic Pills Keller Plans K m e y Reston K ~ w Raymond KirWand R e b Krebs Rcinard Kukovieh Richardron h G m t a Rieger h u b Rittcr L a u d i n Robctts Iawless Robinson Ledera Raebuck Lae Rohrer Lei, R m e y Lc&wrk Rubley ~ ~ d a n d r y Rudy Linton

NAYS-O

Saylw Schaz Sshuler Sc r imt i SRNnel Serafini Smith, B. Smith, S. H. Snyder, D. W. Staback Staim Steelman Steighner Slsil Stem s w e r StiJh Strittrmner Sturla S m Tangrelti Taylor, 1. Thomas Tigue Tamlimn Trcllo Triricb True Tulli Uliana Vance Van Home v o w Vitali Waugh Williams wags. Wcrmink Wright, D. R Wright, M. N. Yandriswitr YRvcic zug

Dew- SpeaLer

NOT VOTING-l

James

EXCUSED-2 OIu2 Taylor, E. Z.

The question was determined in the affirmative, and the resolution was adopted.

Mr. DeWEESE called up HR 46, PN 1014, entitled:

A Resolution memorializing the United States Congress to mandate the Nuclear Regulatory Commission to require the placement of obstruction type barriers at the main entrance and entrances to protected areas at nuclear power plarrts.

On the question, Will the House adopt the molution?


Acoaa Adolph Allen Arsnll Amutmn& Baker Badey Batusio Bebko-Jona Belardi Belfaati Bi-lin Bishop Blaum Bops Bmwn Bunt Bush B M Q Bunon Caltagimne Cappabiansa Carn Carone Cawley C a r Chadwick Civera Clark Clymer Coben. L. I. Coben. M. Cdafella Colaim Cornell Conigan Cavell w curry Daley Dehca D- Dent MY Donahlcci Dnxe Durham Egolf Evans Faimhild Fajt

Fargo F a m r Foe Fichter Fleagle Flick Frennan Gamble Gnnnon Geisi George Gerlach Gigliati Gladosk G d h a l l Oordner Gruitza oluppo Haluska Haans Hsdey Hamy Heckler Henn- Herman H ~ h s y H a r Hughe9 Hutchinula Ilkin Jadlaviec James I d i n losephs Kaisa Kasunic Keller Kenney King Kirklsnd Krrb. K u h i c h LaGmtta Laub hughlin hwlesp L e d m Lee Leh Lescovitz Levdanrky

YEAS-20 1

Lintaa Lloyd Lusyk Lyocb Maitland M&no MarLmcL Mandw Madand Mayaoik McCall MeOeehan McNally Melio Meny Michlovis Mi-e Mibalish Miller Mu& Murphy Nailor Nickol Nyse O'Brien O'DOnnell Oliver Penel Pc r i Peunru Pecmac Penit Pbillips P i a d s Pistell. Pius Plam P m b n Raymond Rcbcr Rcinard Riebardm Rieger Riuer Robnts Robinson Roebuck Rohrer Rmaey Rubley Rudy

MARCH 30

Sashni Smith. B. Smith, S. H. Snyder, D. W. Staback Stain Sccelman stcighna Stdl Slan S t d n sli'h Str inmna S M a Suna Tangmi Taylor, J. n~bnnar

xgue Tomlinm T d l o ‘rr Trich TNC Tdli Ulima vancs VM Home v- Vitali Waugh William wagan Wm!.ialr Wright. D. R Wright, M. N. Ysndriswita YRvfie zw

NAYS-O

NOT VOTING-0

Olaz Taylor, E. 2.

The auestion was determined in the affirmative. and the C resolution was adopted.

1993 LEGISLATIVE JOURNAL - HOUSE 515

Mr BOYES called up HR 49, PN 1174, entitled:

A Resolution commemorating the 30th Anniversary o f the r e d e s i ~ n a t i o n o f the 1st Battalion. 112th Infantrv. of the 28th ~ n f a n t ; ~ D,vtbaon, and d e s ~ g n a t m g Aprtl 1, 1991, a 2 1 5 1 Raltal~on. I I Zth Infantry Day" In P e m s y l v a n ~ a



YEAS-201 Aaosh Adolph Alleo -1 -mag Baker Barley Banish3 . BebbJones Belardi &Ifanti B i d i n Bishop B I a m Boy- Bmwn Bunt Bush Buhvik Buaoo Caltagimne Clppabianur Cam Camne Cawley . Cesar Chamvisk C i v m Clark Clymer Cohen, L. I. Me@" M. Colafella Glaioa Cornell Conigan Cowell C"" curry - Dent

Fargo Linton Farmer Lloyd Fee h c y k Fichter Lynch Fleagle Mailland Flick Manderino F m n Markmk Gamble Mardco Gsnaon Madand Gein Mayernik George McCall Gerlach McGeehan Giglidti McNally Gladeek Melio ~odrhal l M m y Oordoer Michlovic G ~ i k a M i c b e GNppo Mihslich Haluska Miller Hanna Mundy klarley Murphy Hasay Nailor Hskler Nick01 Hennessey N ~ c e H m n WBrien Hershey O'Donnell H ~ s Oliver Hugh- Penel Hutehinson PRei Itkin P m m a J d o w i a Pelmne lames Penit Jsmlin Phillips Josgrhs Pizola Kaiser Pinella K d c Pins Keller Plans Kenney Preston King Raymond Kirldand Reter Krebs Reinard Kukovich Richardson L a G m Rie~er

Dermody Laub ~ i t t i r Dwatucci Laughlin R&J Dmee Lawless Robinson Durham Lederer Roebuck Egolf I s e Rohrer Evens Leh Rmney

Lescovi(z Rubley Fajt Levdmsky Rudy

NAYS4

Ryan Santoni Sather Saurman Saylor kheetz Sshuler scrimenti semmel Serafini Smith, B. Smith. S. H. Snyder. D. W. Staback Stairs Steel"",,, Steighoer Steil Stern Stetler Stish siriffmaurn Studa S u m Tangelti Taylor, J. Thomas Tigue Todinson Trello Trich Tme Tulli Ulisna Vance Van Home v a n Vibh Waugh Williams Wogan Wopliak Wright, D. R Wright, M. N. YandrisRlts Ywcic zu%

DeWeese, Speaker

NOT VOTING-0

EXCUSED-2

Olapc Taylor, E. 2.


Mr. WOMAS called up HR 50, PN 1166, entitled:

A Resolution directing the Education Committee o f the House o f Representatives to conduct a comprehens ive review o f vocational education programs.

On the question Will the House adopt the resolution?

The following mll call was recorded.

YEAS-200

Acorn Fargo Lloyd Addpb F s m Ucyk Allen Fee Lynch b e Fichler Maitland Armtrnng Flesgle Manderino Baker Flick M a r k a d h f i e y F r e m Msrsim Battisto Gamble Masland Bebko-Jon- Gtin Mayernik Belardi George McCall Belfaoti Gedach Mffieehan Bimrlin Giglintti McNslly Bishap Gladeek Melia Blaurn Godshall MrnY B w oordaer ~ i c h l a i c Brown Gmitza Micoztie Bunt O w Mihalid Bush Hslvrb Miller Butkovitz Hanna Mundy Bmtw Harley Murphy Caltagimne Hasay Nailor Cappabianca Hesklrn Nickol Cam Hennestey NP Csrone Hermaa O'Btien Cawley Hershey VDomell C a r Herr Oliver Chadwick Hughes Perrel Civem Hutchinson PRei Clark Itkin Param Clymer Jadlowls Pamffi Cohen, L. I. J-s Penit Cohen, M. lamlin Phillips Colafella Ja~ephr Rcmla Colaizm Kaiser Pisleila Cornell Kasunic Pills Conigao Keller Platts Cawell Kenney Pleston COY King R a m d curry Kirkland R& Daley Krebs Reinard DeLuca Kukovich Richadex D e m w ~ a ~ m t a Rieger Dent Laub Rim D ~ Y Laughlin Roberts Donalucci Lawless Robinmn Dmce Lederer Raebvck Durham Lee Rohrer Egdf Leh Rmney

RF Sari& Sather Saurmpn Saylor %he& schuler Scrimeati Smund sadiai Smiih, B. Smith S. H. Snyder, D. W. Slabsck Sl im Steelman SteiEhneI Steil SaD Sutler Stish stIium.am Shula sum Taagreni Taylor, 1. Tbamas Tigue Tomlinm Trello Trich T N ~ Tutti Uliws Van- Van Home v- Vitali Waugh Williams W w Womisk Wrigbt, D. R Wright. M. N. Ysndrismio Yewcic zug

516 LEGISLATIVE JOURNAL - HOUSE MARCH 30

NOT VOTING- I

Gallm

Enns Lamvitz mle~ hWc+sg Fairchild Lcvdnnsky Rum/ slralra Fajt Lint00

N A Y S 4

T k question was determined in the afftrmative, and the resolution was adopted.

CW King D a b Kirkland Rsba Willi-

- DJ.w K& R e i d W0g.n DRaPey Kukovich R i c l ~ ~ k m Wad& b t ~ a ~ m f t a ~icpa wriph~ D. R C

CONCURRENT RESOLUTION

Mr. ITKIN called up SR 9, PN 787, entitled:

A Concurrent Resolution directing the Joint State Government Commission to study the issues surrounding violence as a public health concern and creating a task force.

On the question, Will the House concur in the resolution of the Senate?


Butkwilz Bvxton Caltagimne Capbianca Cam Camne Cawley Cesaar Chadwick Civm Clark Clymer Cohen, L. I. Coben, M. Colafella Calsizm Comdl comgan Cowell cay

Fargo Famrr Fffi

Fichter Flcagle Flick Freanrn Gamble Gannm Geist George Gerlach Giglioni Glsdeck G&all Gardner G ~ i m GNan ~al;&a Hsma Harley Hasay Heckler Hemeasey Haman Hershey Has Hugha Hutchinmn Itkia ladlo& James Jamlin Josephr Kaiser Kasunic Keller Kenney

Miller Mundy Murphy Nailor Nickol Nrce O'Bnm O'Donnell Oliver Penel Psn Pelram P b n e Pettit Phillips Piccola Pie l la Pitts Platts Preston

Rysn Santoni sather Sawman Saylor Scheetz SehuleI Senmenti Smunel Saafini Smith. B. Smith. S. H. Snyder, D. W. W c k Strim Steelmu Steighner Steil Skm Stetler Stish Strittmatkr Shlrls Sum Tangelti Taylor, 1. Thorns Tigue Todinson Trello Trich Tme Tulli Ulians Vance Van Home Veon Vitali

- Esolf LPe Rahrrr E m s Lch Ramy hwcac Fairchild Lcrcavie Rubley sp.h.r Fajt L w h s b Rudy

NAYS-O

NOT VOTING-0

EXCUSED-2 Olwz Taylor, E Z.

The question was determined in the affrmative, and the resolution was m n d in.

I Ordered, That the clerk inform the Senate accordingly.

1 BILLS ON THIRD CONSIDERATION

The House proceeded to third consideration of SB 1, PN 788, entitled:

I An Act amendmg the act of June 2, 1915 (P. L. 736, No. 338), ent~tled, as reenacted and amended."The Pennsylvania Workmcn'r

Act," adding and amending certain defmitions; referees as workers' com~ensation iudnes; further w

providhg f& contractors, for insuran& and selflins~~ance, for compensation and for payments for medical services; providing for coordinated care organizations; further providing for procedures for the payment of compensation and for medical services and for procedures of the department, referees and the board; adding provisions relating to insurance, self-insurance pooling, self-insurance guaranty fund, health and safety, the prevention of insurance fraud; further providing for certain penalties; making repeals; and making editorial changes.

On the question, Will the House agree to the bill on third consideration? Mr. LLOYD offered the following amendments No. A0651:

Amend Sec. 3 (Sec. l05.3), page 6, line 5, by striking out "PROVIDERS" and inserting . .

Amend Sec. 4 (Sec. 204), page 7, line 30, by strikimg out"E RECEIVING" and inserting

*e,-a..,e= - Amend Sec. 4 (Sec. 204), page 8, line 1, by striking out "m where it appears the first time and inserting

for the same ~ e r i o d for which he Amend Sec. 4 (Sec. 204), page 8, line I , by striking out

"COLLECTING" and inserting coJ$&s

Amend Sec. 7 (Sec. 305), page 17, line 30, by inserting after "Treasurv" tf thc ro~ecutor IS the Anorne General and to the o erattn fund 01 th: counts m whlch the Yd~str~ct attorney 1s :eected ?i the @ prosecutor is a district attorney

Amend Sec. 8 (Sec. 306). page 23, line I I , by removing the comma after "oraanization"

1993 LEGISLATIVE J( IURNAL - HOUSE 517

Amend Sec. 8 (Sec. 306), page 23, line 13, by striking out "s and inserting providers

Amend Sec. 8 (Sec. 306), page 24, line 18, by striking out "medical"

Amend Sec. 8 (Sec. 306), page 27, line 19, by striking out . ~ "e and inserting health

Amend Sec. 8 (Sec. 306). page 30, line 13, by inserting a period after "-

Amend Sec. 8 (Sec. 306), page 30, lines 13 through 15, by striking out "'a&'' in line 13 and all of lines 14 and 15

Amend Sec. 8 (Sec. 306), page 33, line 17, by striking out "medical or"

Amend Sec. 13 (Sec. 324), page 43, line I, by inserting before "m . .

rn Amend Sec. 13 (Sec. 324), page 43, line 3, by striking out

"REIMBURSEMENTS FOR" and inserting a ments in recognition of

Amend Sec. 13*24). vane 43, line 3, bv inserting after . . - - "PAYABLE"

bv the department Amend Sec. 13 (Sec. 324), page 43, by rnsertmg behveen

lines 13 and 14

adequate to fund pavrncnts m the amounts set fonh m subscct~on (a). he shall reduce such Davrnents on a pro rata basls

Amend Sec 15 (Sec 4201. Dave 46. llne 18. bv msenlna a ,..- . . . bracketbefore "sum*"

- Amend Sec. 15 (Sec. 420), page 46, line 19, by inserting

after "purpose" ] Workmen's Compensation Administration Fund -

Amend Sec. 16 (Sec. 422). page 47, line IS , by striking out ... " Is . Amend Sec. 20 (Sec. Sol), page 76, line 16, by striking out

"and" - and inserting Or

Amend Sec. 20 (Sec. Sol), page 77, line 11, by striking out . "insurance Department" and inserting de artment

Amend Sec. z ~ o ) , page 84, lines 7 and 8, by striking out "an insurer" and inserting

a self-insurer Amend Sec. 20 (Sec. 812), page 84, line 29, by striking out

"de~artment" and inserting commissioner

Amend Sec. 20 (Sec. 901), page 88, line 13, by striking out "Insurance Department" and inserting

department Amend Sec. 20 (Sec. 907), page 92, line 17, by striking out "e Amend Sec. 20 (Sec. 1001). page 93, line 11, by inserting

after ''M

1 I U 5 - On the question, Will the-~ouse agree to the amendments?

The SPEAKER The Chair lecognizes Mr. Lloyd on the question.

Mr. LLOYD. Thank you, Mr. Speaker. Mr. Speaker, this amendment does a number of things.

First, it corrects some technical problems with the bill. Secondly, it pmvides that the fines collected when employem are convicted of not having insurance go to the county if the ccunty has done the prosecuting. Thirdly, it makes clear that the costs of peer review are to come fmm the Workmen's Compensation Administration Fund rather than the General Fund. And finally, it provides a mechanism for funding the cost-of-living adjustment and puts a cap on the total amount of money which can be spent for that in any one year.

Mr. Speaker, I would ask for an alknative v& on the amendment.

The SPEAKER The Chair thanks the gentleman. The gentleman, Mr. Gladeck is r e c c g ~ d . Mr. GLADECK. Thank you, Mr. Speaker. I apologize. I have got a preny bad cold, so if you cannot

understand me, I would be glad to repeat it. Mr. Speaker, I rise to oppose the Lloyd amendment. In my

estimation, the amendment limits the number of nonphysicians, including CCO (coordinated care organization) o r ~ o m , to not more than two that happen to be on the list. Tk origiaal language, I believe, limited the number of coordinated klre organizations to not more than two but did not limit the number of- I am sony. Mr. Speaker. Do we have this straightened out?

Mr. PISTELLA. Mr. Speaker? Mr. GLADECK. In my estimation, the original language

limited the number of CCO organizations- The SPEAKER Will the gentleman yield?

POINT OF ORDER

The SPEAKER The gentleman, Mr. Pistella, is re- For what purpose does the gentleman rise?

Mr. PISTELLA. A point of order, Mr. Speaker. The SPEAKER The gentleman will state his point of

order. Mr. PISTELLA. I have inquired, Mr. Speaker. a number of

members do not have the Lloyd amendment. Has it been distributed?

Oh, it is behind the Freeman amendment in a packet. I apologize, Mr. Speaker. Thank you.

The SPEAKER No apology necessary.

The gentleman, Mr. Gladeck, is recognized. Mr. GLADECK. Thank you, Mr. Speaker. Mr. Speaker, the original language, I believe, limited the

number of CCO organizations to not more than two but did not limit the number of other individual providers. In my estimation, the effect of this change is to limit further use of the CCO's which have proven, I believe, to be an effective specialized cost-reduction appmach to work-injury health care.

Moreover. I believe that this change limits access to use of nontraditional medicines, such as chimpractic care, and

518 LEGISLATIVE

actually pits nonphysician providers against each other for very limited space on the list, regardless of how long the list happens to be.

Secondly, I believe that the secalled nonindemnity payments are made the responsibility of the Commonwealth. They are funded through an assessment against insurers in an amount equal to not more than .75 percent of the total compensation that is paid. This change eliminates any constitutional question since the funds are from a current assessment which will be factored into the rate employers will pay in a given year.

The cost issue, sir, I believe remains as a consideration, however. The assessment applied to 1991 compensation costs of $2.3 billion equals $17 million plus, taking into account the rate of increase in compensation costs. The 1993 cost of this assessment to insurers is approximately $23 million, in my estimate.

So based on those two items, I would request that the Hwse vote against the amendment. Thank you, Mr. Speaker.

The SPEAKER The Chair thanks the gentleman. The gentleman from Dauphin County, Mr. Piccola, is

recognized. Mr. PICCOLA. Thank you, Mr. Speaker. I rise to strongly oppose the Lloyd amendment. Mr. Lloyd

in the Committee on Labor Relations inserted the provisions of what are now this bill, and a part of that, and probably the moa objectionable part of that, was a huge new program, which we do not have in current law, which he calls a nonindemnity payment, which is a cost-of-living adjustment.

We could argue the benefits or the negative aspects of that kind of a program, but the fact of the matter is that that is a major cost to the workers' compensation system, and what this whole debate has been about over the last 18 months is a way of reducing the costs to that system.

Now Mr. Lloyd is getting up and I believe by offering this amendment, acknowledpg the fact that this is going to be a major cost to the system by putting in a way of funding it. What he has done is he has made that cost the responsibility of the Commonwealth but then he has imposed a tax, a new tax, on insurance companies writing workers' compensation insurance in the Commonwealth of Pennsylvania. The tax is in the amount of .75 percent of all the total compensation paid in the Commonwealth of Pennsylvania, and it is to be paid by the insurers who write these policies.

Now, where do you think they are going to get the money, Mr. Speaker? They are going to get it out of the pockets of the businessmen that they have to charge premiums to.

This is a tax increase. It is going to increase the cost of this system. This amendment should be defeated and the Lloyd portion of this bill should be eliminated as well. I urge the defeat of the amendment.

The SPEAKER. The Chair thanks the gentleman and recognizes the gentleman, Mr. Belfanti.

Mr. BELFANTI. Thank you, Mr. Speaker. Mr. Speaker, I rise in favor of the Lloyd amendment. What

the gentlemen, Mr. Gladeck and Mr. Piccola, talked about is

JOURNAL - HOUSE MARCH 30

embodied in the main action that took place last Thursday in the House Labor Relations Committee.

The issue of a COLA (cost-of-living adjustment) for workers, which should be explained to the membership here, is a $1,000 to $500 award for only those individuals who have

C been on workers' compensation for a period in excess of 10 years. The COLA does not take effect for another year so that the insurance industry gets to realize the savings from the hits that we have given labor in other provisions of the bill.

Labor has taken and the workingman has taken a $40- million hit in what we have before us, and we are talking about a $15-million give-back only to those people who have been stuck and frozen, in some instances at rates of $70 or $80 a week for a period of 20 years, without having any cost-of- living adjustment.

I daresay there is no other program in this State that has that type of situation. This is a very minuscule program. It is not a big giveaway, and workers' compensation is not a social welfare program. Workers' compensation is aprogram that was designed in exchange for employees giving up the right to sue. Workers' compensation was developed to protect those people who were injured during the performance of their duties.

So the amendment that was offered by Mr. Lloyd a few minutes ago is purely technical in nature. If Mr. Gladeck, Mr. Piccola, and others have objections to what the Lloyd proposal is, it should not be with this amendment; it should be with what we now have before us as SB 1. I believe they are ttying to mix apples and oranges and confuse the issue.

If you want to vote against the workers' COLA to save j some money, there are some other opportunities that will be offered later where you can save some real big money, and I daresay we will not see the same individuals rise on those issues to cut $30 or $40 or $50 million from the business community's premiums.

So therefore, Mr. Speaker, I ask that the members not be fooled by mixing apples with oranges and vote for this technical amendment offered by the gentleman, Mr. Lloyd.

The SPEAKER The Chair thanks the gentleman and recognizes Representative Lloyd for the second time.

Mr. LLOYD. Mr. Speaker, it is important to recognize what this amendment does and does not do. Under the bill without this amendment, there will be a cost-of-living adjustment. That cost-of-living adjustment in the first year, based on the figures we have obtained, would be about $15 million. Under the bill the way it is draft@ without this amendment, that cost will be borne by the insurance

a companies. Each insurance company will probably argue that it must set up a reserve to reflect its long-term costs. The cost in premiums of establishing that reserve will be more than $15 million a year.

What tlus amendment does is attempt to respond to those who have objected to the cost of this provision by putting a cap on the total amount wluch can be spent in any one year. That cap is either the amount needed to fund the benefits set forth in the bill or no more than .75 percent of the total compensation paid, which works out to less than one-ha!f of 1

C

1993 LEGISLATIVE

percent of the total amount of premium dollars collected on workers' compensation in any one year. By placing a cap and by having the State make the assessment rather than each insurance company simply writing checks out of its own account, we will actually spend less money on this.

We also are saying that if in future years the costs to pmvide the full benefits were to exceed the amount that can be raised with that assessment, the Secretary will make a pm rata reduction in all of the benefits. So if your objection is that the COLA costs money, you should vote for this amendment because it puts a cap on that cost and will actually be cheaper than what would happen if the bill were to pass without the amendment.

Mr. Speaker, I would reiterate my request for an affirmative vote.

O n the question recumng, Will the House agree to the amendments?

The following mll call was recorded:

YEAS-I 13

Acasta Fajt Linton Rmney Betiisto Fee Lloyd Rudy Beblro-Jones Freeman Lucyk Santoni &Iardi Gamble Manderino krimenti Belfantl Ganoon Markmk Stahack

George Mayemik Steelman Bishop Gedach M&l Steighner Blaum Gigtimi McGeehan Stetler Boyes Gordner McNally Stish Butkoritz

Melio Buxton Gmim Sturla Halurka Michloric Surra Celtegimne

Mihalich Cappabianca Hanna Tanpetti Cam Hughes Mundy Taylor. J. Camnc ltkin Murphy Thomas Cawley lames O'Brien Tigue Civm Jamlin G'Donnell Twllo Cohen. M. losephhs Oliver Trich Colafella Kaiser Pee Van Home Colaizx Kasuaic Petrsrca Veon Conigaa Keller Petrone Vitali Cowell Kenney Pistella Williams COY Kirkland Preston Womiak CUT Krebs Raymond Wright. D. R. Ddey Kukovish Richardson Yandnsevits DeLuca L a G m Rieger Yewcic Dermody Laughlio Riner Donamcci Lederer Roberts DeWeese, Durham Lereovitz Robinson Speaker Evans Ledansky Rabuck

NAYS-87

Adolph Fama Lynch Saurman Allen Fichler Mailland Saylor Argall Fleagle Marsleo Scheetz Armdlong Flick Masland Schuler Baker Geis~ Mew Semmel

Serafin, Badey Gladesk Micome Miller Birmelin Godshall Sfith. B.

Bmm G ~ U P P ~ Nailor Smith, S. H. Bunt Harley Nickol Snyder, D. W. Bush Hasay Nyce Stain C e s ~ r Heckln Pmel Steil Chadwck Hennesey Pettit Stern Clark H e m Phillips Strittmatter

JOURNAL - HOUSE 519

c h e r Hmhey Picmla Tanlin- Cohen. L. I. comsll

Has Pins Tme Hutchinson Plans Tulb

Demprey ~adlavis ~ebcr Uliana oent King Reiaard Vaace Dmee hub Rohrer Waugh Egolf Lawless Rubley Wright, M. N. Fainhild k Ryan 2% pq0 Leh Sather

NOT VOTING-1

Wow

EXCUSED-2

Olasz Taylor, E. Z.

The question was determined in the affirmative, and the amendments were ageagreed to.

On the question, Will the House agree to the bill on third consideration as

amended? Mr. GLADECK offered the following amendments No.

A0623:

Amend Title, page I, lines 1 through 18, by strlking out all of said lines and inserting Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as

reenacted and amended, "An act defming the liability of an employer to pay damages for injuries received by an employe in the course of employment; establishing an elective schedule of compensation; providing procedure for the determmation of liability and compensation thereunder; and prescribing penalties," adding and amending certain definitions; providing for settlement of claims, for employers' liability, for subcontractors' liability, for employers' financial responsibility and for compensation; providing for compensation of professional athletes; further providing for physical examinations and for a domestic service exemption; prohibiting duplicative compensation; exempting construction design professionals from liability; further providing for hearing examiners and for instituting proceedings; providing for informal conferences; further providing for investigations, for evidence, for appeals, for reports of injuries, for costs and attorney fees and for the Pennsylvania Workmen's Compensation Advisory Council; providing for workers'compensation insurers, for loss costs rating, for self-insurance pooling, for the Self-Insurance Guarantee Fund, for workplace health and safety, for insurance fraud and fraud enforcement and for damages in bid contracts; further providing for regulatory review; providing for workers' compensation insurance rate filings; and making repeals. Amend Bill, page 1, lines 21 through 24; pages 2 through

122, lines 1 through 30; page 123, lines 1 through 11, by striking out all of said lines on said pages and inserting

Sectton 1. Section 101 of the act of June 2, 1915 (P.L.736, No.338) . known as The Pennsylvania Workmen's Compensation Act, reenacted and amended June 21,1939 (P.L.520, No.281) and amended December 5, 1974 (P.L.782, No.263), is amended to read:

Section 101. That this act shall be called and cited as [The Pennsylvania Workmen's] the Workers' Compensation Act, and shall apply to all lniuries occurring within this Cornmanwealth, irrespective of the place where the contract of hiring was made, renewed, or extended, and extraterritorially as provided by section 305.2.

Section 2. Section 104 of the act, amended March 29, 1972 (P.L.159, No.61). is amended to read:


LEGISLATIVE JO URNAL - HOUSE

shall be void: Provided, however, That if the employe receives unemployment compensation benefits, such amount or amounts so received, except for benefits payable under section 306(c), shall be credited [as] against the amount of the award made under the provisions of [section 108.1 sections 108 and 306.

Section 5. Section 301(a) and (c)(l) of the act, amended October 17, 1972 (P.L.930, No.223) and December 5, 1974 (P.L.782, No.263), are amended to read:

Section 301. (a) Everv em~love r shall be liable for . , , . . compensation for personal injury to, or for the death of each employe, by an injury in the course of his employment, and such compensation shall be paid in all cases by the employer, without regard to negligence, according to the schedule contained in sections tluee hundred and six and three hundred and seven of this article: Provided, That no compensation shall be paid when the injury or death is intentionally self inflicted, is caused bv the employe's intoxication or illegal use of drugs, or is caused by the employe's violation of law, but the burden of proof of such fact shall be upon the employer, and no compensation shall be paid if, during hostile anacks on the United States, injury or death of employes results solely from military activities of the armed forces o f the United States or from military activities or enemy sabotage of a foreign power. .

(c) (1) The terms "injury" and "personal injury," as used in this act, shall be construed to mean an injury to an employe, regardless of his previous physical condition, arising in the course of his employment and related thereto, and such disease or infection as naturally results from the injury or is aggravated, reactivated or accelerated by the injury; and wherever death is mentioned as a cause for compensation under this act, it shall mean only death resulting from such injury and its resultant effects. and occurring within three hundred weeks after the injury. The t e k "injury arking in the course of his employment[" as used in this article, shall not include an injury caused by an act of a third person intended to injure the employe because of reasons personal to him, and not directed against h ~ m as an employe or 1 because of h ~ s employment; nor shah I I ~ n ~ l u J c ~ u r ~ e , &stamcd u h ~ l e the employe IS operaling d nluwr vch~clc pro \~dcd h, the em~loye r ~f the empluyc 1s not olher\v~sc ~n thc cdurse of -- I emvloyment at the time of iniurv; but shall include all other iniuries sustained while the e m ~ l o v e is actually enaaeed in the I fuhherance of the business or affiirs of the emalo;e;. whether 1 uion the employer's premlses or elsewhere, and ;hail include all injuries caused by the cond~tion of the premises or by the operation of the employer's business or affairs thereon. sustained by the employe, who, though not so engaged, is ~njured upon the premises occupied by or under the c o ~ ~ t r o l of the employer. or upon which the employer's business or affa~rs are being carried on, the employe's presence thereon being required by the nature of his employment. ..*

Section 6. Section 302 of the act, amended December 5, 1974 (P.L.782, No.263). is amcnded to read:

Section 302. (a) A contractor who subco~itracts all or any part o f a contract and his insurer sliall be l~able for the payment of compensation to the employes of the subco~itractor unless the subcontractor primarily liable for the payment of such compensation has secured its payme111 as provided for 111 this act. Any contractor or his insurer who shall become liable hereunder for such compensation may recover tlie atnourzt thereof paid and any necessary expenses from the subcontractor prin~arily l~able therefor.

Far purposes of this subscct~on, a person who contracts w ~ t h another ( l l to have work oerfurmed cunslstlne of ii) the removal. ~, . " ,, excavation or drtlling of soil. rock or asinerals, or ( ~ i ) the cuttirrg or removal of t~rnber from lands, or (2 ) to have work perfornied 1 of a kind which is a regular or recurrent par1 of thc business, occuostton. ~ r o f e s ~ i o n or trade c~l'sucli oersnn shall bc decriied a 1 . . contractor. and such other person a subcontractor. ' l 'h~s subsect~on shall uot apply, however, to an owner or lcsscc niland pr~nc~pally I used for agr~culture who is not a covered employer under tilts act and who contracts for the removal of ttmbcr from such land

(b) Any employer who permits the entry upon premises occupied by him or under i s control of a laborer or an assistant hued by an employe or contractor, for the performance upon such premises of a part of such employer's regular business entrusted to that employe or contractor, shall be liable for the payment of compensation to such laborer or assistant unless such hiring employe or contractor, if primarily liable for the payment of such compensation, has secured the payment thereof as provided for in this act. Any employer or his insurer who shall become liable hereunder for such compensation may recover the amount thereof aaid and anv necessarv exvenses from another oerson if the laner r -,-~ ~ , . is primarily liable therefor.

For purposes of this subsection (b), the term "contractor" shall have the meaning ascribed in section 105 of this act.

fcl Anv emolovir em~lovina persons in agricultural labor \ ~ , ~, ~. , - .

shall be required to provide ;or&ienvs compensa~on coverage for such employes according to the provisions of this act, if such employe; is-otherwue covered by~the provisions o f this act or if during the calendar year such employer pays wages to one employe for agricultural labor totalling one hundred fifty dollars ($150) or more or furnishes employment to one employe in agricultural labor on twenty or more days in any of which events the employer shall be required to provide coverage for all employes.

(dl A contractor shall not subcontract all or any Dart of a contract unless the subcontractor has presented proof of insurance under this act.

el ( I ) Prior to issuine a buildinn permit to a contractor. a muni!ipality shall require the contractor to present proof of workers'comoensation insurance or an affidavit that the contractor does not emolotr other individuals and is not required to carry workers' compensation insurance.

(2) Every building oernlit issued bv a munici~alitv to a contractor shall clearly set forth the name and workers' comoensation ~ 0 l i c y and the contractor's Federal or State Employer ldentificat~on Number. This information shall be in addition to any information required by munici~al ordinance. If the buildine oermit is issued to an a~pl icant which affirms that it is not obligated to ma~ntain workers' cornpensallon insurance under this act, the permit shall clearly set forth the contractor's Federal or State Eni~lover Identification Number and the substance ofthe affirmation and that the aoplicant is not permitted to employ any individual to perform work pursuant to the building Dermlt.

(3) Every mu~iicipality issuinp, a building permit shall be

(41 A munlcipalitv shall issue a stop-work order to a - - contractor w h o k perfonninq work pursua~it to a buildinn permit upon receipt of actual notice that the contractor's workers' compensation insurance or State-aoproved self-insured status has been cancelled. If a municrpality receives actual notice that a

ermittee which has filed an affidavit of exemption from workers' Eonipensation ltisurance has hired persons to perform work ~ursuant to a building per~illt and does not maintain required workers' compensatio~~ insurance, tlie municipal~tv shall issue a slop-work order. This order shall reniam in effect until prover workers' coniprnsatioii coverage is obta~ned for all work performed pursuant to the building permit.

If) Whcre a contractor IS ~erforniiiig work for a ouhlic body or pol~tical subd~v~s~oi i , all contractors and subco~itractors shall provide proof of workers' co~npcnsation Insurance to the public body or polit~cal subdivision effective far the durat~nn of the

the workcra'cotn~rnsal~on self-insurance status change dur~np, the &I.thi cuitractor shall inimcdtatrly i o t~ fy . in wr t t in~ . the mun~clpallty. public hodv u r polzttcal subdivrswn of such citnccllal~on, cxplrattun or chsn!+' In status.

(h ) Nothing In this act sliall hc the basts i>iany liahil~ly on part o f the n~un~clpa l~ ty . No causc of acttun sceki i l~ either l e ~ a l


or equitable remedies mav be brought under this act against a municivalitv. Anv permittee found in violation of section 302 and anv verson vwor t ins to Drovide notice of violation of section 302 to the municipality shall indemnifv the municipality for anv cost, loss or claim arising. directlv or indirectlv, out of the municipality's issuance of a stov order in response to the violation or in reliance u ~ o n the notice.

0) For DWoses of clauses (d). (e) and (0 . "vroof of insurance" shall include a certificate of insurance or self- insurance, demonstrating current coverage and comvliance with the requirements of this act, the Occuvational Disease Act and the Longshore and Harbor Workers'Com~ensation Act (44 Stat. 1424, 33 U.S.C. 6 901 et ses.). its amendments and suv~lements. where applicable.

( 1 ) For vuraoses of clauses (d). (e) and (0 . "proof of insurance" shall not be required when the emolover has been exempted oursuant to section 304.2.

Section 7. Section 305 of the act, amended December 5, 1974 (P.L.782, No.263) and repealed in part April 28, 1978 (P.L.202, No.53). is amended to read:

Section 305. Every employer liable under this act to pay compensation shall insure the payment of compensation in the State Workmen's Insurance Fund, or in any insurance company, or mutual association or company, authorized to insure such liability in this Commonwealth, unless such employer shall be exempted by the department from such insurance. Such insurer shall assume the employer's liability hereunder and shall be entitled to all of the employer's immunities and protection hereunder except, that whenever any employer shall have purchased insurance to provide benefits under this act to persons engaged in domestic service, neither the employer nor the insurer may invoke the provisions of section 321 as a defense. An employer desiring to be exempt from insuring the whole or any part of his liability for compensation shall make application to the department, showing his financial ability to pay such compensation, whereupon the department, if satisfied of the applicant's financial ability, shall, upon the payment of a fee of [one hundreddollars (S100.00)] five hundreddollars ($5001, issue to the applicant a permit authorizing such exemption.

(2) In securing the vavment of benefits, the department shall require an emplover wishing to self-insure its liabiliw to establish sufficient security bv vostine a bond or other security, including letters of credit drawn on commercial banks with a Thomson Bank Credit Service rating of C or better or a CD rating of BBiA2 or better bv Standard and Poor's. This paragraph shall not apvlv to municipalities.

The department shall establish a period of twelve (12) calendar months, to begin and end at such times as the department shall prescribe, which shall be known as the aunual exemption period. Unless previously revoked, all permits issued under this section shall expire and terminate on the last day of the annual exemption period for which they were issued. Permits issued under this act shall be renewed upon the filing of an application, and the payment of a renewal fee of one hundred dollars ($1 00.00). The department may, from time to time, require further statements of the financial ability of such employer, and, if at any time such employer appear no longer able to pay compensation, shall revoke its permit granting exemption, in which case the employer shall immediately subscribe to the State WorkmenS Insurance Fund, or insure his liability in any insurance company or mutual association or company, as aforesaid.

@ Any employer who recklesslv or negligentlv fails to comply with the provisions of this section for every such failure, shall, upon [summary conviction before any official of competent jurisdiction, be sentenced to pay a fine of not less than five hundred dollars ($500) nor more than two thousand dollars (%2,000), and costs of prosecution, or imprisonment for a period of not more than one (1) year, or both.] conviction in the court of common pleas, be guilty of a misdemeanor of the thud degree. Anv em~lover who intentionallv fails to comply with the provisions of this section for everv such failure. shall, upon conviction in the court of common pleas. be guiltv of a felony of the third degree. Every day's violation shall constitute a separate

offense. A iudge of the court of common vleas mav. in addition to imposing fines and imprisonment. include restitution in his order: Provided, That there is an iniured employe who has obtained an award of com~ensation. The amount of restitution shall be limited to that specified in the award of com~eusation. It shall be the duty of the department to enforce the provisions of this section; and it shall investigate all violations that are brought to its notice and shall institute prosecutions for violations thereof. All fines recovered under the provisions of this section shall be paid to the department, and by it paid into the State Treasury.

W In any proceeding against an employer under this section, a certificate of non-insurance issued by the official Workmen's Compensation Rating and Inspection Bureau and a certificate of the department showing that the defendant has not been exempted from obtaining insurance under this section, shall be prima facie evidence of the facts therein stated.

p.iJ When any employer fails to secure the payment of compensation under this act as provided in sections 305 and 305.2, the injured employe or his dependents may proceed either under this act or in a suit for damages at law as provided by article 11.

(e) Everv emvlover shall post a notice at its vrimarv place of business and at its sites of emvlovment in a prominent and easilv accessible place, including, without limitation, areas used for the treatment of injured emploves or for the administration of fust aid, containing:

(1) Either the name of the emvlover's carrier and the address and telephone number of such carrier or insurer or. if the emplover is self-insured, the name. address and telephone number of the person to whom claims or requests for information are to be addressed.

(2) The followinn statement: "Remember, it is important to tell vour employer about vour iniury." The notice shall be ~os ted in vrominent and easilv accessible places at the site of em~lovment, including such places as are used for treatment and fust aid of iniured emvloves. Such a listing shall contain the ~nformatiou as specified in this sectiou, typed or printed on eiaht and one-half inch bv eleven inch or eight and one-half inch bv thirteen inch paper in standard size type or

Section 8. Section 306(a), (c)(8) and (0 ofthe act, amended December 5, 1974 (P.L.782, No.263) and July 1, 1978 (P.L.692, No.11 Y), are amended and the section is amended by adding clauses to read:

Section 306. The following schedule of compensation is hereby established:

(a) For total disability, sixty-six and two-thirds per centum of the wages of the injured employe as defined in section three hundred and nine beginning after the seventh day of total disability, and payable far the duration of total disability, but the compensation shall not be more than the maximum compensation payable [nor less than fifty per centum of the Statewide average weekly wage. If at the time of injury, the employe receives wages equal to or less than fifty per centum of the Statewide average weekly wage, then he shall receive ninety per centum of his average weekly wage as compensation, but in no event less than thirty-three and one-thud per centum of the maximum weekly compensation payable] as defined in section 105.2. Nothing in this clause shall require payment of compensation after disability shall cease. Nothing in this act shall require payment of com~ensation for anv period during which the emplove is incarcerated after a conviction. If the beuefit so calculated is less than fiftv per centum of the Statewide average weekly wage, then the beuefit payable shall be the lower of fiftv Der centum of the Statewide average weeklv wage or eighty-five per centum of the worker's average weekly wage.

. * t

(c) For all disability resulting from permanent injuries of the following classes, the compensation shall be exclusively as follows:

t t *

(8) For the [complete] permanent loss of hearing, in both ears that cannot be surrricallv eliminated or improved. diagnosed


[(O (I) The employer shall provide payment for reasonable surgical and medical services, services rendered by duly licensed practitioners of the healing arts, medicines, and snpplies,,as and when needed: Provided, That if a list of at least five deslgnated physicians or other duly licensed practitioners of the healing arts or a combinatiou thereof is provided by the employer, the employe shall he required to visit one of the physiclaus or other practitioners so designated and shall continue to vlslt the same or another physician or practitioner for a period of fomeen days from the date of the first visit. Subsequent treatment may be provided by any physician or any other duly licensed practitioner of the healing arts or a combination thereof, of the employes own choice, and such treatment shall be aid for by the employer. Any employe who next following the termination of the fourteen-day period is provided treatment from a physician or other duly licensed practitioner of the healing arts who is not one of the physicians or practitioners designated by the employer, shall notify the employer withim five days of the first visit to said physician or practitioner. However, if the employe fails to so notify the employer, the employe shall suffer no loss of rights or benefits to which he is otherwise entitled under the act.

(2) If and only if the employer has deslgnated at least five physicians or other duly licensed practitioners of the healing arts or a combination thereof as permitted by the preceding paragraph, the following reporting provisions shall apply. Nothing in the following paragraphs shall eliminate rights of the employer to obtain all records and data as permitted under any other sectlous of this act.

(i) The physician or other duly licensed practitioner of the healing arts shall be required to file periodic reports with the employer an a form prescribed by the department which shall include, where pertinent, history, diagnosis, treatment, prognosis and physical findings. The report shall be filed within twenty-one days of commencing treatment and at least once a month thereafter, as long as treatment continues. The employer shall not be liable to pay for such treatment until a report has been filed.

(ii) The employer shall have the right to petition the department far review of the necessity or frequency of treatment ar reasonableness of fees for services provided by a physician or

- No ulatm Lor com ~nsatn,n ior ~.cupath~nal hearin ) Ios? ~ ~~~~

shall be flied u n l l l ~ t l ~ u calcl\dar w e k : have other duly IaenszJ practllioller olthe iicallng arts Such a petltlon - c& clncr rcmaval tr<,m exposure t & ~ ~ d , , u s nohr . ln shall in 1x1 c\cnt ai l as .i superr<deaa, and Ju r~ng the pendency of i n , p l s , s m e n l . In the c a c of a current cnlploye, rcmrnJ\al ir.m any ~ u c h petltmn the emnl,rvr.r shall pay all mcd~cal bills if the ?x~osurr. . . tu h ; l / a r d ~ n i r . ~ n t itlap i.eidK\_~d.ki ph;slcian or other pract~t;oner of the heal~ng arts ftles a report or use ot ettectlve e i ~ ~ r o t e c t ~ o n devlces.


I 1993 LEGISLATIVE JOURNAL - HOUSE 525

( I V ) An allowance shall be revrewed fur reasunableness 11' the secretary dctermmes that the use 01 the allowance would result lo payments more than len per centum lnwer than the average

I level of relrnbursement the provider would receive from coordinated care msurers, tncludmn those entltle~ subtect to the act of December 29. 1972 (P.L.1701, No 364). known as the "Health Mamtenance Omantzatron Acl," and those enutles known

allowances apphcable to other ~rovrders under this section deviate 1 -- - from the re~rnbursement such pruv~ders would r&e~ve from coordinated care msurers Any mformat~on rrccned as a result of

I t h s subparaaraph shall be confident~al (v) The reimbursement for prescription drugs and ( - - -- -

professtonal pharmaceut~cal services shall be llm~ted to one hundred ten per centum o i the average wholesale price of the product: Pruv~ded. That a separate charge ma) be used ~f a pharmacy pn,vrdes drun use evaluat~on o r u t ~ l ~ z a t ~ u n rcvlew.

(vi) The applicable Medicare fee schedule shall include fees I --

assuc~atcd \r,~th all perrn~sslbleprocedure codcs If the Med~care fee schedule also includes a larrcr yrouplnp, of ~n ,oedu r r codes and c~rrrespond~nn charger than are speclflcally rr~mbursed by Medicare, a provider mav use these codes, and corresponding I -- - ~-

charaes shall be p a ~ d bv insurers or employers I t a Medlcare cude exlsts for appl~catlon to a apeclf~c pro\.~der spcc~alty. that cude I shall be used.

[vii) A provider shall not fragment or unbundle charges imposed for specific care exceDt as consistent with Medicare. Changes to a provider's codes by an insurer shall be made only as consistent with Med~care and when the insurer has sufficient information to make the changes and followha consultation with -~ ~~ -

rhepruvlder. (4) Nothmn m thls act shall p roh~b~ t the ~ruvldcr , relf-

msured enlployer, employer or msurer i r un~ contractlna wtth a cr,ordmatrd care organtratlon iur reunbursemcnt levels different f&m thosk identified above.

( 5 ) The employer or insurer shall make Davment. and providers shall submit bills and records. in accordance with the provisions of this section. All payments to providers for treatment provided nursuant to this act shall be made within thirtv davs of receipt of such bills and records, unless the employer or insurer disputes the reasonableness or necessity of treatment provided. A provider who has submitted the reports and bills required bv this section and who disputes the amount or timeliness of the payment from the emnloyer or insurer, except in those situations where the reasonableness or necessity of treatment is disputed, shall file an application for fee review with the department. Within thirtv davs of the filina of such an a~plication, the department shall render an administrative decision.

(6) All disputes as to reasonableness or necessitv of medical treatment shall be resolved in accordance with the following -~

provisions: (i) The reasonableness or necessity of all medical treatment

provided under this act may be subiect to prospective. concurrent or retrospective utilization review at the request of an employer or insurer. The department shall author~ze utrlization review organizations to perform utiltzation review under this act. Organtzations not authorized bv the department mav not engage !n 5 u ~ h u t ~ l l / a t ~ u ~ t c w _

u ' I h&yit~&rcyww .,rj~1rir/nI11)11 shall 15>ue a \r.r!l!.cn repurl 11s i!n*? n n h d n $ l u \ l ~ p , *)thin t h ~ r t ~ r l n s s o i a - - rr.quc\t 1 1 thcpn,\lJ~r, c n ~ p l ~ ~ s c r c , T - I " ~ J ~ s x r < < s with the

available at the time of the tn~tial review. (iii) The employer shall pay the cost ofthe Initial ur~li'zat~on

review. The party whlch docs not prevail on rccons~deratron ofan initial review shall bear the costs of such recons~deration.

rey~ew oraanlzatlon 7) A prov~der shall not hold an emplove habk for costs

relate5 to care or servlce rendered m connection wltb a compenable tnlurv under thrs act unless the s m ~ l o v e has faded to comnlv with this clause.

(8) If the emplove shall refuse reasonable services of duly licensed practitioners of the healing arts. sureical, medical and hospital services, treatment, medicines and suuplies. he shall forfeit all rights to compensation for any iniurv or increase or continuation in his incapacity shown to have resulted from such . .

Ilm~tatlons. (1 0) If acute care is provided in an acute care facility to a

patient with an immediatelv life threatenina or uraent iniurv by a

amount of navment shall be the usual and customarv charge. a L M e d i c a l services required bv the act mav be --

provrdeJ througl~ A coordinated care oraanlratron whtch IS

ccrufred hy the department sub~cct to the f o l l o w m ~ (11 I:ach applrcauon for c e r t ~ f i ~ a t ~ o n shall be accompanied

by a r G s o z b l e fee prescribed by the department. A certificate is valid for such period as the department may prescribe unless sooner revuked ur suspended

(111 A~pltcatton tor c e n ~ f ~ c a t ~ o n shall be made in such form -

and manner as tile department shall requlri and shall set forth Inlt,rnlata,n reuardlnw the proposed plan for ~ rov ldmx services.

&.'[he cuordlnated care oraanlzataon must mclude an ade-number and specialty distribution of licensed health care - - -- -- -

pn,\.lde_rr ~n order to assure appropriate and tlmelv dellvetv of servlues rrqulred under I ~ P act and an appruprlate f lexib~l~ty to u.ork~,rs m jelectlng provlders. Servrces may be provided duectlv,

services designated by the secretary in a manner that is timely and effective.

(ii) Maintains a referral capacitv to treat other iniuries and illnesses not covered bv primarv services but which are covered . . . h\ thl.\acl

urn t~des d cdbe nlanas!emml dnd evaluation svstem W ~ I L ~ ~ n c l u d e ~ cuntlnuoua mullltormp, of treatment from onset of z u r y orillness until fmal resolutron.

(iv) Provides a case communication system which relates necessary and appropriate information amona the emplove, emplover, health care providers and insurer.

(v) Provides appro~riate peer and utilization review and a care dispute resolution svstem.

(vi) Complies with any other requirements of law regarding delivery of medical care services.

(vit) Establishes a written arievance procedure for Prompt and effective resolution o f patient a n e v a m


14) The secretarv shall refuse to certifv or may revoke or I or mother shall be fifty-two per centum of wages, but not in p~

suspend certification of any coordinated care organization if the director fmds that:

(i) the nlan for nroviding medical or health care services fails to meet the requirements of this section: or

(ii) service under the plan is not being provided in accordance with terns of the plan as certified.

( 5 ) A person narticinatina in utilization review, quality assurance or peer review activities pursuant to this section shall not be cxammed as to anv communlcatlon made In the course ol such actrvitres or the fmdmns thereof, nor shall any person be subrect to an actlon for ctvtl damages for actions taken or statements made in good faith.

requirements set forth in parama~hs (2) and (3). as shall be determined m rules or reaulat~ons ~romulaated by the denartnient

(7) The denartment shall have the vower and authority to promulgate, adopt, publish and use rewulau,?ns for the implementation of this section. .

Section 9. Section 307 of the act, amended December 5, 1974 (P.L.782, No.263), is amended to read:

Section 307. In case of death, compensation shall be computed on the following basis, and distributed to the following persons: Provided, That in no case shall the wages of the deceased be taken to be less than fifty per centum of the Statewide average weekly wage for purposes of this section:

1. If there be no widow nor widower entitled to comnensation. comnensation shall be paid to the guardian of the :hlld or chlldrcn, or. ~f there he nu gua;d~an. to suci other persdns 3s may be des~gnatrd by the board as herernafier pruvtded as follows:

la) If there be one child. thirtv-two per centum of wages of decegeb, but not in excess of the statewide average weekly &age.

(b) If there be two children, forty-two per centum of wages of deceased, but not in excess of the Statewide average weekly ~-~

(c) If there be three children, fifty-two per centum of wages of deceased, but not in excess of the Statewide average weekly -

(d) If there he four children, sixty-two per centum of wages of deceased, but not in excess of the Statewide average weekly wage.

(e) If there be five children, sixty-four per centum of wages of deceased, but not in excess of the Statewide average weekly wage.

( f ) If there be six or more children, sixty-six and two-thirds per centum of wages of deceased, but not in excess of the Statewide average weekly wage.

2. To the widow or widower, if there be no children, fifty- one ner centum of wages, but not in excess of the Statewide average weekly wage. -

3. To the widow or widower, if there be one child, sixty per centum of wages, but not in excess of the Statewide average weekly wage.

4. To the widow or widower, if there be two children, sixty- six and two-thirds per centum of wages but not in excess of the Statewide average weekly wage.

4 112. To the widow or widower, if there be three or more children, sixty-six and two thuds per centum of wages, but not in excess of the Statewide average weekly wage.

5. If there be neither widow, widower, nor children entitled to compensation, then to the father or mother, if dependent to any extent upon the employe at the time of the injury, thirty-two per centum of wages but not in excess of the Statew~de average weekly waae: Provided, however, That in the case of a minor chrld who has been c o n t r ~ b u t ~ ~ g to his purcnts. the dcpendenc) ,>I said parents >hall he presumed And provldcd further, lhat lithe father or mother was tutally dependent up.~n the deceased cmpluyc at the time of the injury, the compensation payable to such father

excess of the statewideaverage weekly wage. -

6 . If there be neither widow. widower. children. nor f l dependent parent. enutled to compensat~on, thento the bro'thers )I and slsters. rfactually dependent upon the decedent for RUppOrl at the time of his death, twenty-two per centum of wages f i r one brother or sister, and five per centum additional for each additional brother or sister, with a maximum of thirty-two per centum of wages of deceased, but not in excess of the Statewide average wage, such compensation to be paid to their guardian, or if there be no guardian, to such other person as may be designated by the board, as hereinafter provided.

7. Whether or not there be dependents as aforesaid, the reasonable expense of burial, not exceeding [one thousand five hundred dollars] three thousand dollars (S3.000), which shall be paid by the employer or insurer directly to the undertaker (without deduction of any amounts theretofore paid for compensation or for medical expenses).

Compensation shall be payable under this section to or on account of any child, brother, or sister, only if and while such child, brother, or sister, is under the age of eighteen unless such child, brother or slster is dependent because of disability when compensation shall continue or be paid during such disability of a child, brother or sister over eighteen years of age or unless such child is enrolled as a full-time student in anv accredited educat~onal ~n \ t~ tu t~on when compensation shall contmue until \ U L ~ * I U ~ C I I I hccumes twenty-three No compensation shall be payable under this section to a widow, unless she was living with her deceased husband at the time of his death. or was then actuall) dependent upon h ~ m and recelvlug frum hun a substantral portlon uf her <upport No compensation shall bc payable under thrs secttun tu a urdowcr, unless he he Incapable of self-support at the time of his wife's death and be at suchtime dependentupon her for support. If members of decedent's household at the time of his death, the terms "child and "children" shall include step- children, adopted children and children to whom he stood in loco parentis, and children of the deceased and shall include posthumous children. Should any dependent of a deceased employe die or remarry, or should the widower become capable of self-support, the right of such dependent or widower to comnensation under this section shall cease exceot that if a widow ~ - .- r ~ ~ - - ~ ~ ~ . - ~ ~ ~

remarries, she shall receive one hundred four weeks compensation at a rate computed in accordance with clause 2. of section 307 in a lump sum after which compensation shall cease: Provided, however, That if, upon investigation and hearing, it shall be ascertained that the widow or widower is living with a man or woman, as the case may be, in meretricious relationship and not married, or the widow living a life of prostitution, the board may order the termination of compensation payable to such widow or widower. If the compensation payable under this section to any person shall, for any cause, cease, the compensation to the remaining persons entitled thereunder shall thereafter be the same as would have been payable to them had they been the only persons entitled to compensatron at the time of the death of the deceased.

The board may, if the best interest of a child or children shall so require, at any time order and direct the compensation payable to a child or children, or to a widow or widower on account of anv child or children, to be paid to the guardian of such child or children, ur. i f therc hc no guard~an, tosuch other person a\ the bslard AS herematter providcd may dlrect lithere be no guardtan or comnllltee of an) nllnur, dependent. or Insane emdoye, or dependent, on whose account compensation is payable, the amount payable on account of such minor, dependent, or insane employe, or dependent may be paid to any surviving

I

parent, or such other person as the board may order and direct, and the board may require any person, other than a gliardian or committee, to whom it has directed compensation for a minor, dependent, or insane employe, or dependent to be paid, to render, as and when it shall so order, accounts of the receipts and disbursements of such person, and to file with it a satisfactory bond in a sum sufficient to secure the proper application of the

C moneys received by such person.


Section 10. The act is amended by adding a section to read: Section 308.1. (a) The eliaihiliw of professional athletes

for compensation under this act shall be lnnited as provided in this section.

(b) The term "professional athlete," as used in this section, shall mean a natural person employed as a ~rofessional athlete bx a franchise of the National Football League, the National Basketball Association, the National Hockey League, the National League of Professional Baseball Clubs or the American League of Professional Baseball Clubs. under a contract for hire or a collective bargaining agreement, whose wages as defined in section 309 are more than six times the Statewide average weekly

(c) In the case of a professional athlete, anv compensation ayable under this act with respect to partial disabilitv shall be

feduced bv the after-tax amount of anv: 1) Wages payable by the employer during the period of

disabhity under a contract for hire or collective bargaining agreement.

(2) Pavments under a self-insurance, wage continuation, disabilitv insurance or similar plan funded bv the emplover.

(3) lniurv protection or other iniurv benefits payable bv the employer under a contract for hire or collective bargaining agreement.

(d) In the case of a professional athlete, the term "wages of the in.ured emplove" as used in section 306(b) for the purpose of compAting com~ensation for partial disabiliw shall mean two times the Statewide average weeklv wage.

Section 11. Section 314 of the act, amended February 28, 1956 (1955 P.L.1120, No.356), is amended to read:

Section 314. At any time after an injury the employe, if so requested by his employer, must submit himself for examination, at some reasonable time and place, to a physician or physicians legally authorized to practice under the laws of such place, who shall he selected and paid by the employer. If the employe shall refuse upon the request of the employer, to submit to the examination by the physician or physicians selected by the employer, [the board] a referee assigned by the derrartment may, upon petition of the employer, order the employe to submit to an examination at a tune and place set by [it] the referee, and by the physician or physicians selected and paid by the employer, or by a physician or physicians designated by [it] the referee and paid by the employer. The [board] referee may at any time after such first examination, upon petition of the employer, order the employe to submit himself to such further examinations as [it] referee shall deem reasonable and necessary, at such times and places and by such physicians as [it] the referee may designate; and in such case, the employer shall pay the fees and expenses of the examining physician or physicians, and the reasonable traveling expenses and loss of wages incurred by the employe in order to submit himself to such examination. The refusal or neglect, without reasonable cause or excuse, of the employe to submit to such cxamination ordered by the [board] referee, either before or after an agreement or award, shall deprive him of the right to compcnsation, under this article, during the continuance of such refusal or neglect, and the period of such neglect or refusal shall be deducted from the period during which compensation would otherwise be payable.

The employe shall be entitled to have a physician or physicians of his own selection, to be paid by him, participate in any examination requested by hls employer or ordered by the [board] referee.

Section 12. Section 321 of the act, added March 29, 1972 (P.L.159, No.61). is amended to read:

Section 321. [Nothing contamed in this act shall apply to or in any way affect any person who at the time of injury is engaged in domestic servlce: Provided, however, That in cases where the employer of any such person shall have, prlor to such inJury, by application to the Workmen's Compensation Board, approved by the board, elected 10 come withln the provisions of the act, such exemption shall not apply.] Nothiun contained in this act shall a ~ p l v to or in anv wav affect:

1) Anv aenon who at the time of iniurv is engaged in domeitic service: Provided. however. That in cases where the emplover of anv such person shall have, prior to such iniurv. by application to the department. and approved bv the department, elected to come within the ~rovisions of the act, such exemotion shall not ~ D D ~ V .

(2) Anv person who is a licensed real estate sales per so^ an associate real estate broker, affiliated with a licensed real estate broker, under a wrinen agreement. remunerated on a commission onlv basis and who qualifies as an independent contractor for State tax pumoses under the act of March 4. 1971 (P.L.6. No.2). known as the "Tax Reform Code of 1971."

Section 13. The act is amended by adding sections to read: Section 322. It shall be unlawful for anv employe to receive

compensation under this act if the emplove is, at the same time, receiving workers' compensation under the laws of the Federal Government or anv other state for the same iniurv. Further. it shall be uulawful for an emplove receiving compensation under this act simultaneously from two or more emplovers or insurers during any period of total disabiliw to receive total com~ensatiou in excess of the maximum weeklv compensation pavable under this act. Nothing in this section shall be deemed to prohibit pavment of workers'compensation on a pro-rata basis, where an emplove suffers from more than one iniurv while in the employ of more than one emplover: Provided, however. That the total compensation paid shall not the exceed the maximum weeklv compensation vavable under this act.

Section 323. (a) No construction design professional who is retained to perform professional services on a construction project. or any em~love of a construction design ~rofessional who is assisting or representinu the construction design professional m the performance of professional services on the site of the construction proiect, shall be liable under this act for anv iniury or death of a worker not an employe of such desian ~rofessional on the construction ~ ro iec t for which workers' compensation is payable under the ~rovisions of this act.

b The immunily from liabilitv provided by the above subsection shall not a v ~ l v if:

(1) the iniury or death is caused bv the negligent preparation of design plans or s~ecifications by the construction design professional;

(2) the construction design professional assumes responsibility for safetv practices at the construction ~roiect by wrinen contract; or

(3) the construction design ~rofessional aclnallv exercises control over the portion of the construction site where the worker is injured or killed.

(c) Notwithstanding any provisions to the contrary, this section shall apply to claims for com~ensation based on iniuries or death which incurred after the effective date of this act.

Section 14. The first paragraph of section 401 and section 402 of the act, amended February 8, 1972 (P.L.25, N0.12), are amended to read:

Section 401. The term "referee," when used in this [article] act, shall mean [Workmen's Compensation Referee] a Worker's Compensation Judge of the Department of Labor and Industry, appointed by and subject to the general supervision of the Secretary of Labor and Industry for the purpose of conducting departmental hearings under this act. The secretary may establish different classes of [referees.] these judges. Anv reference in an) statute to a workmen's compensation referee shall be deemed tc be a reference to a workers' compensation iudge.

* I *

Section 402. All proceedings before any referee- those for which an informal conference has been applied for as provided by sectlon 402.1, shall be instituted by claim petition 08

other petition as the case may be or on the department's own motion, and all appeals to the board, shall be instituted by appea: addressed to the board. All claim petitions,requests for informal conferences and other petitions and appeals shall be in writing and in the form prescribed by the department.

Section 15. The act is amended by adding a section to read


compensatlon payments w~thout pretudlce and wtthuut admtnmg l~abrltrv pursuant to a nottce of temrrorarv ComDensatlon payable as nrescr~bed by the deparlment t

- (I) the referee may accept the statements of both parues,

toaethzr w ~ t h any med~cal reports, wttnesses' statements or other documents whtch the oartles would l ~ k e to present;

(11) all communtcatlons, verbal or wr~tten. from the partles to the referee and anv informat~on and ev~dence presented to the referee durlnn the ~ruccedmns shall he conf~dent~al . and

(1111 each parry may be represented, but the employer may onlv be represented by an attumev at the ~nfi,rmal conference tf the employe is also represented bv an attorney at the informal conference. copy filed with the department. but in no event shall this notice

he sent or filed later than five days after the last payment. Payments of temporary compensation shall not be recoverable by the emplover or insurer.

li) Such notice shall advise the claimant that if the employer 1s ceasmn payment of temporary compensat~on that the pavment of temporarb comvensauon was not an adm~asron of l~abllltv of the emplover w~ th respect to the lnlurv sublect to the notlce of temporary compensatlon payable and that the employe must tile 4 clam to e\tabl~sh the l~ablltty of the emplover

111) 11 the employer ceases makmn ~avmen t s pursuant tu a nottce df temm~rary compensatlon payable. alter com~lytnp. wlth this clause, the emplover and e m ~ l o v e retain all the rights, defenses and rrbl~nat~ons with reaard to the c l i l ~ ~ s u b ~ e c t to the nottce of temporary cornpensalton payable; and the payment of temporary compensation may not be used to support a c l am for

Section 406.1. The employer and insurer shall promptly investigate each injury reported or known to the employer and shall proceed promptly to commence the payment of compensation due either pursuant to an agreement upon the compensation payable or a notice of compensation payable as provided in section 407 or pursuant to a notice of temporary compensation payable as set forth in (d) below, on forms prescribed by the department and furnished by the msurer. The first installment of compensation shall be paid not later than the twentv-first dav after ,~~ ~~

the cmpluser has nullce or knowlerlye ul'llre cnlpl;ye\ dtsahlllty Interest shall accrue on all due and unpa~d compensatlon at the rate of tcn per ccntum per annum. Any payment ofcomoensatron prior or subsequent t o a n agreement or notice of cambensat~on = - - - - payable or a temporarv n u t ~ ~ ; uf compensat~on ~avahlx or greater m amount than pr~)vtded theretn shall. tu the extent of the amount of such payment or payments, d~scharye the l ~ a b ~ l ~ t v ol the employer with respect tosuch case.

.

Payments of compensation pursuant to an agreement or notice of compensation payable may be suspended, terminated, reduced or otherwise modified by petition and subject to right of hearing as provided in section 413.

If the insurer controverts the right to compensation it shall promptly notify the employe or his dependent, on a form prescribed by the department, stating the grounds upon which the right to compensation is controverted and shall forthwith furnish a copy or copies to the deoartment. . .

(d, in anv lnstnncc *ere dn c m ~ l o s c r IS unctrld~n whtthcr a c l am 1s com~ensable under t h ~ s act or 1s unccrtaln ol the extent o i its 11abll11v under th15 act, the e m ~ l ~ , v c r ma\ rnltrale

compensatlon. . . . [ln) Payment of temporary compensation shall be

considered compensation for purposes of tollinp. the statute of limitations under section 315 of this act.

Section 17. Section 420 of the act, amended February 8, 1972 (P.L.25, No.12), is amended to read:

Section 420. (a) The board, the deoartment or a referee. if it or he deem it necessary, may, of its o; his own motion, eitder before, during, or after any hearing, make or cause to be made an investigation of the facts set forth in the petition or answer or facts pertinent in any injury under this act. The board, department or referee may appoint one or more impartial physicians or surgeons to examine the injuries of the plaintiff and report thereon, or may employ the services of such other experts as shall appear necessary t o ascertain the facts. The referee when necessary or app~opr~atc or upon request of a party in order to rule on netltluns i~lerl under clause ( f I I of sectlon 306. or under other provtslons of thts act. mas ask for an onmion tiom peer review about the necesslry or frequency drtreatment under clause (f.1) of section 306 1,) peer retluw The peer revlew report or the peer reporr o i an) phys8ctan. surgeon, or expert appumted by the department or by a referee, includina the report of a peer review organization, shall be filed with the board or referee, as the case may be, and shall be a part of the record and open to inspection as such. The referee shall consider the report as evidence but shall not be bound bv such report.

(b) The board or referee. as the case mav be. shall fix the , . ~ ~~ ~~ ~ ~~

compe~sa t~on ot such phy srcrans, surgeons, and experts, a m peer re\ leu o rpan~~auons uhtch. when so tlxed, shall be paid out of the sum approprrattd 10 the I)epartment of labor and Industry

~~ . for such purpose.

Section 18. Section 422 of the act. amended February 8, 1972 (P.L.25, No.12) and March 29, 1972 (P.L.159, No.61), is amended to read:

Section 422. (a) Netther the board nor anv of its members c nor any referee s h a r b e bound by the common'law or statutory rules of evtdence in conducttug any heartng or tnvestlgatton, but all ftndtngs of fact shall be based upon sufftc~ent, competent 4


I substantial evidence to justify same. All parties to an adiudicatory roceedina are entitled to areasoned decision, containing fmdinas

Ef fact and conclusions of law based upon the whole record which clearly and conciselv state and explain the rationale for the decision so that all can determine whv and how a particular result was reached. The adiudicator shall specify the evidence upon which the adiudicator relies in conformity with the sufficient, competent and substantial evidence standard required by this section. The adiudication shall provide the basis for meaningful appellate review.

If any party or witness resides outside of the Commonwealth, or through illness or other cause is unable to testify before the board or a referee, his or her testimony or

0 deposition may be taken, within or without this Commonwealth, in such manner and in such form as the department may, by special order or general rule, prescribe. The records kept by a hospital of the medical or surgical treatment given to an employe in sucb hospital shall be admissible as evideuce of the medical and surgical matters stated therein.

@ Where any claim for compensation &a t issue before a referee [involves twenty-five weeks or less ofdisahility], either the employe or the employer may submit a certificate by any qualified physician as to the history, examination, treatment, hagnosis and cause of the condition, and sworn reports by other witnesses as to any other facts and such statements shall be - admissible as evidence of medical and surgical or other matters therein stated and findings of fact may be based upon sucb certificates or such reports[.]: Provided. That, any party shall be allowed the opportunity to take a deposition for owposes of cross- examination, upon the tenderine to the party offering the report, reasonable expenses. including the fee for such deposition: And provided further, That the use of a deposition shall not preclude introduction of a medical report. Should a dispute arise as to the reasonableness of the amounts demanded or tendered, the referee hearing the petition shall issue an order relating to the assessment

Where an employer shall have furnished surgical and medical services or hospitalization in accordance with the provisions of [subsection (0 ofl section 3 0 6 0 , or where the employe has himself procured them, the employer or employe shall, upon request, in any pending proceeding, be furnished witb, or have made available, a true and complete record of the medical and surgical services and hospital treatment, including X rays, laboratory tests, and all other medical and surgical data in the possession or under the control of the party requested to furnish or make available such data.

The department may adopt rules and regulations governing the conduct of all hearings held pursuant to any provisions of this act, and hearings shall be conducted in accordance therewith, and in such manner as best to ascertain the substantial rights of the parties.

Section 19. Section 423 ofthe act, amended March 29,1972 (P.L.159, No.61), is amended to read:

Section 423. (aJ Any party in interest may, within twenty days after notice of a referee\ [award or disallowance of

a compensation] adiudication shall have been served upon him, take an appeal to the board on the ground: (1) that the [award or disallowance of compensation] adiudication is not in conformity with the terms of this act, or that the referee committed any other error of law; (2) that the findings of fact and [award or disallowance of compensation] adiudication was unwarranted by sufficient, competent and substantial evidence or was procured by fraud, coercion, or other improper conduct of any party in interest. The board may, upon cause shown, extend the time provided in this article for taking such appeal or for the filing of an answer or other pleading.

-a In any such appeal the board may disregard the findings of fact of the referee if not supported by sufficient, competent & substantial evideuce and if it deem proper may hear other evidence, and may substitute for the findings of the referee such findings of fact as the sufficient. competent and substantial evidence taken before the referee and the board, as hereinbefore prov~ded, may, in the judgment of the board. requlre, and may

make such [disallowance or award ofcompensationor other order] adiudication as the facts so [founded] found by it may require.

Section 20. Sections 438 and 440 ofthe act, added February 8, 1972 (P.L.25, No.12), are amended to read:

Section 438. rn An employer shall report all injuries received by employes in the course of or resulting from their employment immediately to the employer's insurer. If the employer is self-insured such injuries shall be reported to the person responsible for management of the employer's compensation program.

An employer shall report such injuries to the Department of Labor and Industry by filing directly with the department on the form it prescribes a report of injury within forty-eight hours for every injury resulting in death, and m!zi&!g within [three] days after the date of injury for all other injuries except those resulting in disability continuing less than the day, shift, or turn in which the injury was received. A copy of this report to the department shall be mailed to the employer's insurer forthwitb.

@ Reports of injuries filed with the department under this section shall not be evidence against the employer or the employer's insurer in any proceeding either under this act or otherwise. Such reports may be made available by the department to other State or Federal agencies for study or informational purposes.

Section 440. In any contested case where the insurer has contested liability in whole or in part, includina contested cases involving petitions to terminate. reinstate, increase, reduce or otherwise modify compensation awards, agreements or other payment arrangements or to set aside final recebts, the employe or his dependent, as the case may be, in whose favor the matter at issue has been finally determined shall be awarded, in addition to the award for compensation, a reasonable sum for costs incurred for attorney's fee, witnesses, necessary medical examination, and the value of unreimbursed lost time to attend the proceedings: Provided, That cost for attorney fees may be excluded when a reasonable basis for tbe contest has been established[: And provided further, That ifll

(b) If counsel fees are awarded and assessed against the insurer or em~lover, then the referee must make a f m d i i ~ as to the amount and the length of time for which such counsel fee is

ayable. based upon the complexity of the factual and legal issues Lvolved. the skill required, the duration of the proceedinns and the time and effort required and actually expended: If the insurer has paidor tendered payment of compensation and the controversy relates to the amount ofcompensation due, costs for attorney's fee shall be based only on the difference between the final award of compensation and the compensation paid or tendered by the insurer.

[Incontested cases involvingpetitions to terminate,reinstate, increase, reduce or otherwise modify compensation awards, agreements or other payment arrangements or to set aside final receipts, where the contested issue, in whole or part, is resolved in favor of the claimant, the claimant shall be entitled to an award of reasonable costs as hereinabove set forth.]

LC) A claimant shall be required to reimburse the employer the costs of litiscation, includin~. but not limited to, attornev fees, costs incurred for transcripts and notes of testimony, expen witness fees, subpoenas. medical records and medical examination, if it is determined that the claimant has frivolously filed or contested the petition.

Section 21. Section 447 of the act, added May 20, 1976 (P.L.135, No.61) is amended to read:

Section 447. (a) There is hereby created an advisory council, to be known as the Pennsylvania [Workmen's] Workers' Compensation Advisory Council[, and to be composed of men and women witb an equal number of employer, employe, and public representatives who may fairly be representative because of their vocation, employment, or affiliations]. The council shall [consist] be comprised of [a maximum of seven] members [including the], with five members being employe reoresentatives and five members beinn employer representatives. The Secretary of the Deparment of Labor and Industry[, who] shall be an ex officio


member. The members of such council shall be appointed 3 follows: three each by the [secretary within thirty days of the effective date of this amendatory act and shall serve a term of two years and until their successors have been appointed and qualified] President pro tempore of the Senate and the Speaker of the House of Re~resentatives and two each by the minority leader of the Senate and the minority leader of the House of Representatives. The members of the council shall select one oftheir number to be chairman. [Such council shall consider and advise the department upon all matlers related to the administration of The Pennsylvania Workmen's Compensation ActandThe PennsylvaniaOccupational Disease Act. Such council may recommend to the secretary upon its own initiative such changes in the provisions of these acts and the administration thereof as it deems necessary and shall make periodic reports to the secretary regarding the performance of its duties and functions.]

(b) [In the performance of its duties, the] (1) council may hold hearings, receive testimony, solicit and receive comments [and information] from interested parties and the general public and shall have full access to information relating to the [purpose of these acts] administration of this act by the Department of Labor and Industrv. The council shall not have access to confidential medical information pertaining to individual claimants, but may develop statistical studies and surveys concerning [the] aspects of incidence of [occupational] injuries [and diseases generally.] claims management, litigation. and adherence to the provisions of this act and the act of June 21, 1939 (P.L.566. No.284). known as "The Pennsylvania Occupational Disease Act."

(21 The council shall review annually any requests for funding by the department and any assessments against employers or insurers related thereto and provide a report to the secretarv and the Governor regarding the a ~ ~ r o ~ r i a t e n e s s of such requests.

(3) The council shall review ~ r o ~ o s e d legislation and renulations pertaining to this act and provide comment at least quarterly to the Governor, the secretarv and the General Assembly on the effects of such proposals.

(41 The council shall provide to the Governor. the secretary and the General Assembly, on an annual basis, a report on the activities of the council. makina recommendations concerning needed improvements in the workers' comvensation system and the administration of the system. The report under this paragraph shall be made during the General AssemblvS consideration of the General Approuriations Act for the succeeding fiscal year. The report is due no later than May 1.

(c) The members of the advisory council,once appointed, shall serve staggered terms of two and three years, equallv balanced amona the representatives of employes and employers. Members shall serve without compensation, but shall be entitled to be reimbursed for all necessary expenses incurred in the discharge of their duties. The secretary shall [appoint an executive secretary and such other personnel as he shall deem necessary to aid] provide facilities and clerical and orofessional support as needed bv the council in the performance of its [functions] duties. The compensation of such [employes] staff and the amounts allowed them and to members of the council for traveling and other council expenses shall be deemed part of the expenses incurred in connection with the administration of [The Pennsylvania Workmen's Compensation and The Pennsylvania Occupational Disease Acts] thisact.

Section 22. The act is amended by adding a section to read: Section 448. (a1 An insurer issuing a workers'

compensation and em~loyers'liability insurance policy shall offer, upon request. as Dart of the policy or by endorsement, deductibles optional to the policyholder for benefits payable under the policy, snhiect to approval by the commissioner and subiect to underwriting by the insurer consistent with the prtnciples in clause Ib). The commissioner shall promulgate at least three plans with varying deductible options, the least amount of which shall be no less tban one thousand dollars ($1,0001, nor more tban two thousand five hundred dollars ($2.500). The commissioner's authorihi to promulgate any such plans shall not preclude an

insurer from nenotiatinn a deductible in excess of the largest deductible plan herein authorized.

Ib) The followinn standards shall govern the commissioner's .promuhation, and an insurer's offer, of deductible olans:

(1) Claimants' rinhts are vro~erlv protected and claimants' benefits are paid without renard to any such deductible.

(2) A~wowiate premium reductions reflect the woe and level of any deductible approved by the commissioner and selected by the policyholder.

(3) Premium reductions for deductibles are determined before a~plication of any experience modification, premium surcharge or premium discount.

(4) Recognition is given to polic~holder characteristics, including size, financial caoabilities, nature of activities and number of employes.

(51 If the ~olicvholder selects a deductible, the policvholder is liable to the insurer for the deductible amount in reaard to benefits paid for compensable claims.

( 6 ) The insurer pays all of the deductible amount, applicable to a compensable claim, to the person or wovider entitled to benefits and then seeks reimbursement from the policyholder for the ap~licable deductible amount.

17) Failure to reimburse deductible amounts bv the policvholder to the insurer is treated under the policy in the same manner as non-payment of premiums.

Section 23. The act is amended by adding articles to read: ARTICLE VII~

LOSS COSTS RATING Section 701. It is the intent of the General Assembly: (I1 To protect ~olicvholders and the public against the

adverse effect of excessive, inadequate or unfairly discriminatorv rates. -

(2) To encourage, as the most effective way to produce rates that conform to the standards of paragraph (I), independent action by and reasonable price com~etitioo among insurers.

(3) To provide formal regulatory controls for use if price com~etition~~fails. -

(4) To authorize cooperative action among insurers in the ratemaking process and to regulate such cooperation in order to prevent practices that tend to bring about monopoly or to lessen or destrov com~etition.

To provide rates that are responsive to competttive market conditions and to improve the availability of insurance in

~ ~

this Commonwealth. Section 702. This article applies to the classification of

risks. underwriting rules, expenses. losses and profits for insurance of emplovers and employes under this act, for insurance under the Occupational Disease Act and for insurance with respect to the Commonwealth as to liability under the Longshore and Harbor Workers'Comvensation Act (44 Stat. 1424, 33 U.S.C. $ 901 et seq.). written as part of a workers' compensation and employers'liabilitv policy and the Federal Coal Mine Health and Safety Act of 1969 (Public Law 91-173.30 U.S.C. 6 801 et seq.). - .

becllon 703 A, used in thls artlclc "('lasslltcat~on sy~lem" or.'rlass~!lcatlon" means the plan.

~p

system or arranwemenl fdr recognrzlnr dtilerences in exposure to hazards smunadu,trres, dccupatldns or operations of Insurance polrcvh.~lders.

"Competitive marker means a market, except when found to be noncompetitive under the standards of section 710.

"De~artment" means the Insurance Department of the Commonwealth.

"kx~er~ence riillnYYY nledns i( rdtlngprucedure ullllxln~ pas1 ~ n s u r a n ~ . ~ exuer~.n~::.oL 1hrn&?.rdunl ~oltcyh~<lder to iorccast -- futurs losscs h y msasurtna the ~ol~cvholder's l,rss expcrlence -. anamst the, Ia,ss r.x~cr~r.ncr-s,i ~ol~cy~_ull lers. m the Ydme classlilcatlon l !>~d?ucc a PrJSP~ctlvc ~ r e n ~ c r e d t t , deb11 or

...... - - M a r k c t mean lhs Interaclr~~n In thls State. belwern bubers

scllr.r> .,I w.,rkers' ~Jnlpenraltun and cmplovcrs' llahlllt l=nLe wrtlr~~r lhia C.,mm~)n,~,calth pursuant to the pr,gr IS,,,,,^ ,,':

,


1 1993 LEGISLATIVE JOURNAL - HOUSE 533

Srctlon 719 (a) A person ur oryanrzauon may nor wlliully w~thholll infdrmattc,n tiom or know~nnlv nlve false or mlsleadlng -- ~nformat~on which wlll aficct the rates or premrums charneable p~

under this article to: (1) the commissioner: or (2) any ratina oreanization or any insurer. (b) A violation of this section shall subiect the one who

commits that violation to the penalties provided in section 720 and anyone who violates this section with intent to deceive commits aerluw and is subiect to prosecution therefor in a court of

1993 LEGISLATIVE JO URNAL - HOUSE 535

facilities within its own organization with respect to claims administration. underwriting matters, loss prevention and safety engineering or presents a contract with a reputable service company to provide snch assistance.

(16) Meets the other criteria established by this act or bv the department pursuant to regulations promulgated under this act or the Occupational Disease Act.

(c) Each application for approval of a fund shall be accompanied by a nonrefundable fee of one thousand dollars 1$1.000). payable to the department which shall be deposited in the Workmen's Compensation Administration Fund.

Section 803. (a) (1) The department shall, in accordance with section 802. review, aoorove or disapprove fund applications under such rules and requirements relating to applications under section 305 and the Occn~ational Disease Act as may be apolicable and such rules and regulations as are specifically adooted with regard to fund applications.

(2) During the pendency of the orocessing of any fund application, the group of emplovers shall not operate as a fund.

Jb) Permits shall identify an aunual reporting period for the fund as established bv the department.

Section 804. All permits issued under this article shall remain in effect unless terminated at the request of the fund or revoked by the department.

Section 805. (a) If at any time the fund i s found to be insolvent, fails to pay any required assessments under this act or the Occuoational Disease Act. or fails to complv with any provision of this act or the Occupational Disease Act or with any rules promulgated thereunder, the department mav revoke its permit after notice and opportunitv for a hearing.

(b) In the case of revocation of a permit. the department may require the fund to insure or reinsure all incurred liability with an authorized insurer. All fund members shall immediately obtain coverage required by this act.

Section 806. (a) Members of the fund shall pay a minimum of twenhi-five per centum of their annual assessment into the fund on or before the inception of the fund. The balance of the annual assessments shall be paid to the fund on a monthly, quarterly or semi-annual basis as required by the fund's bylaws and approved by the department.

(b) Each member's annual assessment to the fund shall eoual such member's annual payroll times the a~plicable rates utilized bv the State Workmen's Insurance Fund minus the premium discount specified in Schedule Y as avproved by the commissioner. Dividends mav be returned to members in accordance with section 809.

LC, Nothing contained in this section shall preclude the assessment and payment of supplemental assessments as provlded in section 810.

Section 807. After the final permit approval date of thc iund. urospective new members of the fund shall submit an aoplication for membership to the fund's plan committee or administrator in a form approved by the department. This apvlication shall include an agreement of joint and several liability as requtred in section 803. The administrator or plan committee may approve the ap~lrcation for ntembersh~p oursuant to the bylaws of the fund. The applicatron approved by the fund

shall be filed with the department. The fund shall retain the authority to reject any applicant.

Section 808. (a) Individual members may elect to terminate their oarticipation in a fund or he subiect to cancellation bv the fund pursuant to the bylaws of the fund for nonpayment of

remium or other violations. Anv member withdrawing from a :und or member terminated by the fund for non~avm-f assessments shall remain fully oblinated for claims incurred during the period of its membership in accord with fund bylaws. including, but not limited to. amounts owed as annual or supplemental assessments. Notice of termination ofany participant shall be filed with the fund. The fund shall attach any snch notices of termination to the renewal apolication filed with the department.

[b) The fund shall notify the department immediately if termination of a member causes the fund to fail to meet the requirements of clause (b) of section 802. Within fifteen days of the notice of withdrawal or decision to exoel, the fund shall advise the department of its plan to bring the fund into compliance with clause (b) of section 802. If the olan does not

Sc-trun Y I L ( 2 , If the ssr<ls o l ' a fund are at anv tlnte -- ~ n s u f f ~ c l ~ n ~ to cnahlc th* fund to Jihcharnc its legal lrabllltles and --- .,tl,r.r .,hl~palt~,nr and to maintan the actuarlalls approorlatc loss rcseri7<> requared .,f i t undcr paragra~h ,141 o i clause (b) of i.<sti.,n 802. the iuud hhdII forthwth makc UP thc deiic~encv ur Ict l as5r.smen1 upan the iund nlernbzrs lor the amount nrrded - to make up the deficiencv.

thc iund l s l l s t d assess its memhers or to utherw~se make up such Jeilcil within thlrlb davs the dcpartmcnt shall order it to do so.

Jd) If the fund fails to make the required assessment of its members withtn thirty days after the department orders it to do so. or if the deficiency is not fully made up within sixhi davs after the date on which such assessment is made or within such longer period of time as may be spec~fied by the department. the fund shall bc deemed to be insolvent.

(e) The department shall proceed against an insolvent fund in the same manner as the department would proceed against an ~~ -~ - -

insurer under&ticle IX. (0 in addition, in the event of the liquidation or default o f

a fund, the department mav levy an assessment upon the fund members for such an amount as the department determines to be necessary to discharge all liabilities of the fund including the


- Section 815. fa) A report shall be prepared bv each fund

for each annual reportinn veriod and shall be filed with the department and made available to each fund member.

[b) The information contained in the annual report shall include, for each member of the fund and the fund itself:

U) Summarv loss reports. (2) An annual statement of the financial condition of the

fund ~revared bv a certified public accountant and performed in accordance with aenerallv accepted accountina ~rlociples.

0) Reports of outstandme liabilities showing the n m b e r of claims, amounts paid to date and current reserves as certified by an independent actuarv.

(4) Such other information as requtred by regulation of the de~artment as mav be au~licable to ap~licants for self-insurance under sectlon 305 and the Occupational Disease Act or regulations m regard to fund a~~l ica t ions .

fc) The annual report shall be accompanied by a one thousand dollar ($I.OVO) evaluation fee.

SUbSCrlDtlOn. Section 818. The devartment is authorized to promulgate

rules and reaulations for the administration and enforcement of this article.

ARTICLE IX SELF-INSURANCE G U A R A N n FUND

Section 901. As used in this article: "Compensation" means benefits paid vursuant to sections

306 and 307. "Emvlover" means a self-insured em~lover or the emvlover

~ - as defmed in this act.

"Guarantv F u n d or "fund" means the Self-Insurance Guaranty Fund established in section 902 for iniuries and exposures occurring on or after Julv 1. 1992.

"SecuriW"means surehl bonds, cash, negotiable securities of the United States Government or the Commonwealth or other negotiable securities such as letter of credit. acceptable to the Insurance Department whicb are posted bv the fund to guaranq the vavment of workers'compensation benefits.

"Self-insurer" means an emvlover exempted under section 305 or a proup self-insurance fund permitted to operate under . . . - ~ - - - Artlcle V111.

Section 902. fa) (1) There is herebv established a special fund to be known as the Self-Insurance Guaranw Fund.

(2) The fund shall be maintained as two distinct custodial accounts in the State Treasurv as sevarate and distloct accounts subiect to the procedures and vrovisions set forth in this article.

(b) The moneys in each custodial account shall consist of securitv and assessments, as defined in section 907 and loterest accumulated thereon.

Icl The administrator shall establish and maintain the followine two distinct and separate custodial accounts. The moneys and other assets in each account are not to be commineled or used to pay claims from the other account.

I l i Custodial account for self-insured employers for the exclusive benefit of claims arising from defaultha individual self-

I

I 1993 LEGISLATIVE JOURNAL - HOUSE 537

Section 904. (a) When a self-isurer fails to Day comDensation when due. the de~artment shall detennme the reasons for such failure.

b) 11 the de~artment determines that the ,failure to Day Lnsation is due to the self-insurer's financial mabilm to Pay

comDensation the de artment shall notifv the self-insurer of same and&ect co~Densayion to be Daid within fifteen davs of such

. . nonce. - ) ~f the self-insurer fails to Dav the compensation as

direc;d and within the time g t forth in this sectlon. the de~aflment shall declare the self-msurer III default.

i d ) e n e v e r the department determines that a default has occurred it shall:

1)' ~ ~ ~ ~ ~ t i ~ ~ t e the circumstances surroundinu the default. the . of . security available and the abilihi of the self-msured I


~ ~ c t l ~ ~ I I O J l f an lnsuran~u cla~m 15 made b y n ,lectronic mcans. 11 shall be a

vinulv n~adc the clnun c o m p z i b ~ l l ~ n r tapes or ~ t h e ~ c rebuttable resum tion that thc person k11Ov if the pers:n has a:\,~seJ the msurer m urrtmg that clalms will be submitted by use of cornpurer b~lllny tapes or other elecm,n~c

General shall have standing to challenge the authorih' of the Attorney General to investigate or prosecute the case. and, if any such challenge is made. the challenge shall be dismissed and no relief shall be available in the courts of the Commonwealth to the person making the challenge.

Section 11 10. Nothing contained in this article shall be construed to limit the regulat0N or investigative authoritv of any department or agency of the Commonwealth whose functions might relate to persons, enternrises or matters falling within the scope of this article.

Section 11 11. All fines and penalties imposed following a conviction for a violation of this article shall be collected in the manner provided by law and shall be paid in the following manner:

1) If the prosecutor is a district attorney, the fines and shall be paid into the operating fund of the counN in

which the district attorney is elected. 2) If the prosecutor is the Attorney General, the fmes and

peualfies shall be paid into the State T r e a s w . ARTICLE XI1

FRAUD ENFORCEMENT Section 1201. As used in this article: "Antifraud plan'' means tbe insurance antifraud plan required

to be filed and maintained pursuant to this article. "Department" means the Insurance Devarhnent of the

violates ~ z l c l e Xi. b) The insurer. its employes, agents and brokers, shall

furnis6 all papers. documents, reports. complaints or other facts or evidence to any police. sheriff or other law enforcement agency or governmental entity duly authorized to receive such information. . . .. when so requested, and shall assist and cooperate

U.S.C. 4 I ct seq.). Section 24. Notwithstanding any other provision of law to

the contrary, regulat~ons promulgated under the authority of


section 306(f.I)(3)(ii) of the act, as amended by this act, shall not be subject to the provisions of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act, or the act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act.

Section 25. For purposes of the initial filing only, notwithstanding any other provisions of this act, the following provision shall apply:

(1) Each rating organization shall file, within 60 days after the enactment of this act, a loss cost filing Dursuant to section 709(c) of Article VI1 of the act for new and renewal policies for workers' compensation msurance Such fdmg shall be subject lo approval ur disapproval by the Insurance Comm~ssioner pursuant to Article VII of the act, but such approval or disapproval shall be made not later than 30 calendar days after fust receipt of the loss cost fding.

(2) In the absence of an order approving or disapproving the loss cost filing within 30 calendar days of its fust receipt, the filing shall be deemed to meet all of the requirements of this act.

(3) No later than 30 days from the date of the actual

(b) The provisions of 75 Pa.C.S. 55 1720 and 1722 are 1 repealed insofar as they relate to workers'compensation payments or other benefits under the Workers' Compensation Act.

(c) All other acts and parts of acts are repealed insofar as they are inconsistent with this act.

Section 28. The amendment or addition of sections 402,

C 402.1,420,422,423 and 440 of the act shall apply to claims filed on or after the effective date of this act under section 29(4).

Section 29. This act shall take effect as follows: (1) The addition of Articles VIIl and IX of the act

shall take effect in 120 davs. (2) Section 27(a) of this act shall take effect in 30

days. (3) The following provisions shall take effect

immediately: (i) The addition of Article VII of the act. (ii) Section 25 of this act. (iii) Section 26 of this act, (ivj This section.

(4) The remainder of this act shall take effect in 60 days.

or deemed approval of the above loss cost filing, each individual insurer shall file forthe lnsurance Commissioner's approval or disapproval provisions for loss adjustment or for claim management expenses, other operating expenses, assessments, taxes and profit or contingency allowances. A D O ~ O V ~ ~ or disaooroval shall be made not later than 30 davs

(4) In the absence of an order approving or disapproving any filing adjustment under paragraph (3) within 30 days of its f i s t receipt, the filing shall be deemed to meet all the reauirements of this act.

On the question, Will the House agree to the amendments?

The SPEAKER. On the question, the Chair recognizes the eentleman from Monteomew. Mr. Gladeck.

aA;r fust receipi bf the filing. The effective date of filings shall be the date specified in the filing, but shall not be earlier than 30 days after the filing is received by the Insurance Commissioner.

(5) No la& than the effective date of the loss cost filing, the Insurance Commissioner shall publish aggregate

- Mr. RYAN. Mr. baker? The SPEAKER. The gentleman, Mr. Ryan, is recognized. Mr. RYAN. I wonder if the gentleman, Mr. Gladeck would

factors for loss adjustment or for claim management exoenses. other ooeratina exoenses. assessments. taxes and

or conting'ency anowkces, which insureis may use in the foregoing initial filings. In order to reflect differing business acquisition expenses, the lnsurance Commissioner shall publish three different aggregate factors: for insurers whose policies are sold primarily through independent agents, for insurers whose policies are primarily sold directly by such insurers and for the State Workmen's Insurance Fund. Any insurer filing which uses an aggregate factor not in excess of the appropriate factor shall be deemed approved upon filing for purposes of this section.

(6) If an insurer's rate approved under this section is less than the rate anoroved at Workers' Comoensation Rate Proposal No. ~:<30 (Docket No. ~91-05-21) and implemented on and after December 1, 1992, the reduced rate shall be implemented as an outstanding rate change effective as of 60 davs after enactment of this act and shall be applied on a pro-rata basis tor the remainder of the pol~cy term of policies outstanding. Any appropriate reductton in the premium shall be credited lo an msured, w~thoul mtcresr, uoon renewal of the workers'comoensation insurance nolicv o; refunded to the insured within \ O days after expirailon df a policy which was issued or renewed on or after December 1, 1992. Insurers shall be entitled to adjust or recover any commissions due or paid to agents as a result of premium reductions credited or refunded under this paragraph. Section 26. No changes in indemnity compensation made by

this act shall affect payments of compensation indemnity for injuries sustained prior to the enactment of this act.

Section 27. (a) The following act and parts of acts are repealed:

Section 654 of the act of May 17, 1921 (P.L.682, No.284), known as The lnsurance Company Law of 1921.

75 Pa.C.S. 5 5 1735 and 1737.

yield for the purpose of my making a motion. Mr. GLADECK. Yes, I would be so inclined. Mr. RYAN. Thank you.

rl MOTION TO REVERT

TO PRIOR PRINTER'S NUMBER

Mr. RYAN. Mr. Speaker, at this time I would move the prior printer's number, being PN 447.

Now, what we are talking about here is having before the House at that point the Mellow-Madigan bill as it came from the Senate, and why do I think that is important? I think it is important for a number of reasons, principally because it is a bill then that will have passed the Senate. It is a bill that we can be assured will go immediately to the Governor, will not run into a problem in the Senate, will not run into a problem with a conference committee if it passes here. It is a bill that has some flaws in it, has some warts, but it also has a lot of good to it. It is not the best bill, but it is certainly far better than what we have today. It IS far better than the 24-percent increase that our businessmen are paying today. It is a bill that, if enacted into law, the oeoole of this Commonwealth I think can live with both the' workers and the employers of the Commonwealth.

I am reading here; I am looking at a statement from the Pennsylvania Institute on Public Policy, and there is a statement here that I just cannot help but quote, and it is dated very recently, February 18, and I am going to take just one line: " 'With Pennsylvania l e d n g the nation in plant closings and mass layoffs, our policy-makers must be particularly aware of the status of dislocated worker training programs.' " Well,

C what we have here is an acknowledgment of the ter~ible

1993 LEGISLATIVE

situation we have here in Harrisburg. This is a policy that was subscribed to by Messrs. Veon and Kukovich. It is on the Pennsylvania Institute on Public Policy, and it is one that I can subscribe to and I suspect one that we a l l can. The only way we are going to give the employers of Pennsylvania a break is if we address some of these issues that have been facing us, and the biggest single issue facing the employers of Pennsylvania today is the threat of further closings caused by this unemployment compensation problem and workmen's compensation problem, and we can address one of them today.

On that basis, Mr. Speaker, I would move that SB 1 revert to its prior printeri number, being number 447.

On the question, Will the House agree to the motion?

'rhe SPEAKER. On the motion, the gentleman from Somerset, Mr. Lloyd, is recognized.

Mr. LLOYD. Thank you, Mr. Speaker. Mr. Speaker, rather than getting into all of the substantive - arguments about why I think the bill in its current form is

better than the bill in its prior printer's number, I would invite the members to turn to page 118 of the bill, and this is a little . hard to read because it has got the lines through it. But lots of folks have said that one of the things we have to do as part of this legislation is to roll back the average %-percent rate increase granted last fall. 1 would invite your attention to lines , 6 through 12: "In order to provide an efficient implementation of this act and to assure fair and equitable treatment of insureds and insurers,"-now, this is the relevant language6'the order and adjudication issued by the commissioner, dated afier the effective date of this act, In re ... Compensation Rate Revision Promal C..." and so fo rk "and pending, is set aside as being in conflict with this act." -

Mr. Speaker, there is no such decision. This is language which was carried over apparently from a draA which was worked on last fall before the Commissioner's order was in effect, and this language, if we were to pass that, would mean that there would be no mandated rollback at all, because the rollback is predicated on a determination which has already been s i g n 4 has already been implementeQ and is already past the appeals period. It is simply legally incorrect to refer to that as an order dated after this bill passes and pending when this bill passes.

I would also invite your attention to the next page, page 119, starting up at the top of the page, and you will read a section which in essence mandates that insurance companies of this State file for a new rate increase. Now, I do not know when they are going to come for a rate increase, but I do not see why we ought to be mandating that they come in and do that.

So, Mr. Speaker, if you are really serious about making sure that the savings get flowed through to employers, this ) language in the prior printer's number is techmcally flawed and will not accomplish that. We should go about our business, deal with the various amendments, and defeat this motion. Thank you, Mr. Speaker.

JOURNAL - HOUSE 541

The SPEAKER The Chair thanks the gentleman and recognizes the Representative from Washington County, Mr. Daley.

Mr. DALEY. Thank you, Mr. Speaker. I tind it quite amusing that the minority leader talb about

the Institute on Public Policy studies and about industrial plant closings in Pennsylvania.

For some of the new members, we did a study about industrial plant closings in Pennsylvania, and it was pointed out during the Thornburgh administration, from 1983 to 1985, that over 363 plants had shut down, costing about 140,000 jobs. We recommended at that time-and it was resisted by the minority party, the Governor's Response Team as a response to that-standards for corporate behavior and they resisted, PennPRlDE (Pennsylvania Program for Recovety, Investment, Development, and Education) and they resisted, plant closing laws they resisted, and now meaningful workers' compensation reform they are resisting.

I rise and oppose this motion to revelt to a prior printer's number, Mr. Speaker.

The SPEAKER The Chair thanks the gentleman. The gentleman, Mr. Belfanti, chairman of the Labor

~0mmittee. Mr. BELFANTI. Thank you, Mr. Speaker. Mr. Speaker, I have met with many business people over

the course of the past couple of months. They undernand that SB 1 as it came to the House is technically flawed. Senator Mellow recognizes, along with his that the bill is technically flawed as it came over, and they were hoy~ful that we would Correct some of those technical flaws. We did in fact correct those and many others in the course of what we have before US today as the House-amended version of SB 1. Senator Mellow does not want this bill back in the form that it arrived here because it contains no rollback whatsoever.

In addition, Mr. Speaker, what is contained and is not technically flawed but I believe is an affront to the business people that most of us represent and hope will keep their doors open is some pmvisions that are very much antibusiness, and 1 am sure many of you have received letters from Your business community and from your local chambers of commerce that they were opposed to the Mellow-Madigan-m pmvision.

One of the things that they overlooked in the first two drafis of Mellow-Madigan was the little catchall where an insurance company can automatically i m p 20 to 25 p3rcent of their rates, those rates that are calculated as the administrative costs of their industly, without going for prior approval to the Insurance Commissioner. That provision is contained in this flawed version of SB 1 along with many other antibusiness-and I say that, "antibusiness"-problems, many of which we have negotiated with small business, medium business, and big business over the course of drafting what we now consider to he the Lloyd p m p d .

Do not he caught up in semantics and believe that by sending this bill over to the Senate they can pass it. 7hey cannot. They would need to suspend their rules. It would

. . = . number.

The SPEAKER The Chair thanks the gentleman and recognizes Mr. Saurman.


Mr. SAURMAN. Thank you, Mr. Speaker. Just a couple of comments. First of all, Mr. Speaker, I have had dozens of letters with

reference to workers' wmp, and they have all said, please support the Mellow-Madigan Senate bill. I do not know why businesses should differ from one geographic area to another, but there has been never one letter that indicated that there has been a problem. Maybe they have said, this does not go far enough, but please at least do this much for us at this time.

Secondly, Mr. Speaker, I think requiring that the insurance wmpanies come hack for a rate increase is wise, and you say there is nothing in the bill that talks about a rollback. If in fact the insuring companies have to come before the Insurance Commissioner again and ask for a rate change, it does not have to be a rate increase because the Commissioner can look at and will look at the data that is presented at that time, and then we can have a rate that truly reflects what the cost is to

probably end up in a conference wmmittee. What the minority leader failed to tell people when he mistakenly said that it w d d have no problem over in the Senate and it would have no problem in conference committee is the pending threat of Governor Casey's veto if SB 1 in its present form arrives on his desk with the language containing no prior rate review and the many other deficiencies of what we know as Mellow- Madigan ID, SB 1.

So I urge that we resist the attempt to reven to a prior printer's number because it takes us back to square one. We will need to once again, afler a wnference repolt or after the Senate suspends its ~ l e s and sends the bill back we will need to be again on this floor debating SB 1. So please do not fall for that. and o m the motion to revert to a nrior ~rinter's

Argall Fleagle Leh Saylor A m r o n g Flick Lpch %he& Baker Gamble Maitland Schuler Barley GRa Marsico Semmel

increases. You folks have the Insurance Commissioner. We will have passed legislation that actually saves some costs instead of legislation which we have just heard guarantees $15 million in extra payments aside from anything else.

I urge that we do this now, get it to the Governor, and get

C it done. Thank you.

On the question recurring, Will the House agree to the motion?


YEAS-95 ~ d o l p h Farmer Lawless Sather A l l a Fiehter Lee S a u m

0

B i m l i n b y e s Bmwn Bunt Busb Camne Cesslr Chamvick Clark Clymer Cohen. L. I Comell Dewse~ k t Dmce Egolf Fairchild

Gdach Masland Gladeck Meny Godshall Mi-e GW Miller Haona Nailor Harley Nickol Hasay Nyce Heckler Ppnel Henneroey Penit Herman Phillip Hershey Piaola Hess Pins Hutchinson Plans Jadloulec Reber Kenney Reinsrd King R o k Krebr Rubley Laub Ryan

NAYS-106 Fajt Manderino

Serafini Smith, B. Smith, S. H. Snyda, D. W. Stairs Steil stem strimtter Todinson Tme Tulli Uliaoa V m e Waugh Wogan Wright. M. N. zup

support this motion to revelt to the prior printer's number. Thank you.

The SPEAKER. The gentleman, Mr. Heckler, is recognized.

Mr. HECKLER. Thank you, Mr. Speaker.

provide the benefits and the that has been spoken about up to this time.

Mr. Speaker, I would celtainly urge that we do in fact

Very briefly, I rise in sipport of the motion to revert. I believe that everyone can agree and I am sure that Mr.

Lloyd would agree that the language he cites on page 119 of the bill, as it is presently in print, requires a new rate filing if this act is passed, just as his language would require a new rate filing, so where we are going to be, where our businesses are going to be 6 months, 9 months, a year down the line is having rates, through the Insurance Commissioner, which reflect what we have done with this legislation. If we have accomplished meaninglid cost savings, then they are going to see lower rates whether or not there is some kind of immediate rollback, which then can in turn be increased or not.

This legislation, if we pass it and send it to the Governor today, will require new filings. They do not have to be

Barnsto Fee M d w k saotooi Bebko-Jones Freeman Mayemik Scrimenti Belarh Gannon McCaII Stabnck &lfant, Georne McGeehao Steel- Bishop ~i~l;ti McNally Steighner Blaum Gordner Melio Sta la Butkovitz Gmitza Miehlovic Stish Bvxton Halusks Mihalich Shlrla Caltagime Hugher Mundy S u m Cappabianca Itkin Mulph~ Tangreni Cam Cawley Civera Cahen, M. Colafelle Colaimn Comigan Cowell coy Cuny Daley DeLuca D e d y Donatucci Durham Evans

J a m O'Brim Jamlin O'Donnell Josephs Oliver Kaiser P e e KasurUc Pararca Keller Pamoe Kirkland Piaella Kukovich Preston LaGrdta Raymond Laughlin Richardson Lederec Rieger Lescovitz Ritter LNdansky Robens Linton Robinson Lloyd Roebuck Lucyk Rooney

NO?' VOTING-0

Taylor, J. Thomas Tigue Trello Tnch Van Home Vmn Vitali Williams W&ak wnght. D. R. Yandnsevits Y ~ n c

DeWeae. Speaker C


EXCUSED-2 [ considered in the past. Some of the provisions are based upon

On the question recurring, Will the House agree to the amendments?

O I ~ ~ a y l o r , E. Z.

The question was detemuned in the negative, and the motion was not agreed to.

~ & n t i a l l ~ andgenerally, these provisions include the most recent medical provisions. which would provide for 117 percent of medicm for primary care and 120 percent of

the original compmmise, and a number of the Mellow-Madigaa provisions, such as workplace safety provisions and the doubI&' payment provisions, reflect changes that were the result of direct negotiations that were held by Senators Mellow and Madiean and Governor Casw.

The SPEAKER. The clerk has read the amendment, and the gentleman from Montgomery County is recognized.

Mr. GLADECK. Thank you, Mr. Speaker. Mr. Speaker. the amendment that 1 am offering tcday is

replesentative, I believe, of reforins that are uuly needed to reform workers' compensation. I ,think that it .&eq p q r recognition to the basic purpose of our efforts for reform -that is, to reduce the cost of this program in brder t o fix our economy and to save jobs. Let us be honest: Without business, we do not have jobs, and the best program as defined by some ' in this chamber is of little use in Uying to attract n&v business and industry to Pennsylvania and keeping our curretit btisiness and industry here in Pennsylvania.,

In order that we put this debate in an accurate fiistorical perspective, it is wonh noting the changes that have occurred in workers' compensation since its beguuung. Many labor advocates in recent weeks have been fond of citing historic compmmise. That historic compmmise, for which employees gave up the right to sue, pmvided a fixed wage loss benefit that did not increase at its maximum fmm year to year. It was based upon the occurrence of an identifiable accident, and it had very limited medical.

The Federal Occupational Safety and Health Act, when it was enacted in 1970, established a National Commission on - Workers' Compensation. That commission issued its repon and recommendations in 1972. Pennsylvania and many other States enacted the commission's recommended changes, which substantially expanded benefits for injured workers. Pennsylvania adopted these changes in 1972 and 1974. These changes changed coverage from accidents to injuries, thus including sofl tissue, repetitive, and occupational disease injuries under the act. They changed the wage loss benefits by substantially expanding them and providing for an annual adjustment in the maximum amount. If you doubt the difference, just look at the level of benefits prior to 1972. Finally, memcal coverage was made unlimited.

In essence, the historical compromise was fundamentally altered to the substantial benefit of workers in 1972. Since that time, we have seen a growth trend that has increased rapidly in the last several years. If th~s trend is not addressed the cost of this expanded program will overwhelm our economy and its businesses and our citizens.

The prnposed changes that we are offering do nothing to the range of expanded benefits given to workers in 1972. All they seek to do is make them affordable.

Most of the provisions in this amendment arc taken from the Mellow-M&gan proposals that we have already

medicare for specialized care; the coIponte officer optional exemption; minimum compensatioq which is set at 85 percent of the worker's wage below 50 percent of the statewide avenge weekly wage; the unemployment compensation offset; a requirement for reasoned decisions by r e k m , which is based upon a standard .adopted by the International Association of Industrial Accident Boards and Commissions, to which Pennsylvania is a party and was a panicipant in the dratling; the use of a substantial evidence standard, which I have lee undefined in this version so that it is consistent with court rulings generally applicable in this area; medical reports in lieu of depositions; informal conference pmvisions; and a hold. harmless payment of temporary compensation for up to 6 months in questionable cases.

The amendment also includes some of the Lloyd proposal, although quite honestly not much. The fraud provisions are identical to those now found in SB 1, as amended in committee, and a provision for allowing civil suits for fraud similar to the language in Title 18, was added.

Finally, the amendment does include a new provision and one that I would hope is not controversial, and that is the revised hearing loss pmvision. Many of us have heard about the need to address this issue. I believe the proposal is balanced and fair. It will allow benefits to some who do not get them today, and by the same token, I believe it will control costs that are quickly getting out of hand. The language for this part of the amendment is based upon successful law in other States.

If I may, at this point 1 would like to address the members of this chamber who are intent upon voting against my amendment because the opposing interest groups, the labor unions and the trial lawyers, have characterized it as pmbusiness. They tried time and time again to portray the members of my party as the party of the wealthy and the ruling class, only interested in guaranteeing high profjts for business and exorbitant salaries for CEO's (chief executive officers).

Mr. Speaker, I have not spent the last year and a half of my time and the members of my committee on the Republican side of the Labor Relations Committee's aisle have not spent the last year and a half of their time and energy on workers' compensation reform to insure massive profits for insurance companies and physicians. In fact, I need to look no further than to the theme which canied President Clinton to his election victory to explain my motivation. It is the economy, stupid.

544 LEGISLATIVE

The businesses which are not expanding because of higher workers' comp rates, which will continue to be high if the Lloyd proposal is adopted, are businesses in Democrat and Republican districts. The businesses which are closing because they cannot absorb the cost of these premiums are businesses inDemocrat districts and Republican districts. The businesses which are fleeing the State to surrounding States with more equitable compensation systems are businesses in Democrat and Republican districts. The men and women employed by these businesses who have lost their jobs and face unemployment in the future are constituents of the Democrat members of this Assembly as well as the Republicans.

When turning to another theme articulated frequently by our new Democratic President of the United States, we all must be willing to sacrifice in order to save the economy. The Lloyd amendment proposes a superficial sacrifice which will have no substantive impact on the crisis facing Pennsylvania's economy in the form of its workers' compensation system.

I am tired of the rhetoric, and quite honestly, I am tired of the battle on workers' compensation reform. I do not know how many times we tried to offer amendments to make the system better, but I would like to say to the people of Pennsylvania that the Republican members on this side of the aisle and others whose vote indicates a support for a stronger workers' compensation system that can make Pennsylvania wmpetitive with other States in the northeastern part of the United States are doing so for the benefit of all Pennsylvanians.

Thank you very much for your time, and I would appreciate a positive vote on my amendment. Thank you.

The SPEAKER The gentleman, Mr. Clymer, from Bucks County is recognized.

Mr. CLYMER. Thank you, Mr. Speaker. Mr. Speaker, I rise in support of the Gladeck amendment.

This is legislation designed to correct and improve the workers' compensation system.

Mr. Speaker, as I have mentioned previously on the floor of this House, our family is third generations in manufacturing. Allow me to provide some information about this company, which is probably typical of the average small business in Pennsylvania, and then focus in on the real need for meaningful change in the workers' compensation system.

Our company, my brother's company, has 18 people on the payroll. My brothers and their sons come to work not in dress suits, although there is certainly nothing wrong with that, but in work clothes because production requires hands-on involvement. Management is on the shop floor, not in the office. Their major competition is located in the South and in the Midwest, where there is a definite competitive advantage in both the coprate tax stmcture and, equally important, in workers' compensation rates.

During the past 5 years, the company has had a 188-percent increase in workers' compensation. In the last 5 years, this company has had a 18gpercent increase in workers' compensation. Some of the larger manufacturing companies, which do not have the kind of commitment to the local


community as do the thousands of these small, family-~un businesses, will move part or all of their operations to the sections of the Nation that provide lower taxes and where the benefit package is less expensive, and I am not being critical, because they have stockholders and other people that they have

C to account to and they have to show a profit for them to continue in business.

Just recently in upper Bucks County, we lost 50 manufacturing jobs to Florida, and one of the reasons was the inability for us to deal with workers' comp and the tax structure. They were just contributing factors. Many of the small entrepreneurs cannot pass on to the consumer continuous rate increases for health care, for product liability insurance, and yes, workers' compensation, not to mention the problem of providing pay raises for their dedicated employees.

Whether or not you as a Representative represent a district having these kinds of family-owned businesses, you can sense the economic importance, the cultural value, the tradition of having family-owned companies healthy and wmpetitive in your town. They are part of the roots of your community - very similar to having third and fourth family members operating the family f m .

It is one thing if small firms are forced out of business because their product has become antiquated. That is acceptable. But it is another issue if small businesses go down because we as legislators did not act responsibly.

Mr. Speaker, it is a common occurrence for all of us to reminisce about companies that used to be in our town. The very thought evokes fond memories of bygone days. But how & sad if we help to place many of these small, family-owned companies in the "used lo be" category because we did not heed their cry for help. The refom language in the Gladeck amendment is not a cure-all for sure, but it will bring about the kind of meaningful reform that will result in reduced premiums for workers' compensation.

As I mentioned at the outset, my emphasis was on the small, family-owned company. Obviously, employers of all stripe are interested in what we do here today, and indeed they have tuned in on this debate, on this vote.

Many of the new members on both sides of the aisle, I am sure, promised to make a difference if elected. You pmmised to keep jobs in Pennsylvania, and that is right and that is good, and you are here to support small businesses. The Gladeck amendment will do just that. Mr. Speaker, today all of us, freshmen and those who have been elected for another term, will be given that opportunity.

Mr. Speaker, I urge a "yes" vote on the Gladeck amendment. Thank you very much.

The SPEAKER. The gentleman from Somerset, Mr. Lloyd, is recognized.

Mr. LLOYD. Thank you, Mr. Speaker. Mr. Speaker, I ask for a "no" vote. The previous speakers have talked about the need to

address the costs in the system, and I have not seen data from anybody which has refuted the Governor's obselvation that far and away the biggest savings to be aclueved in any of these

t

i 1993 LEGISLATIVE

versions of this legislation would be thmugh capping medical

1. costs. The caps on medical costs which are already in the bill are the same caps on medical costs which are included in the Gladeck amendment, so those savings are going to be there regardless.

Now, what I think is the principal problem with this amendment and a number of others which we will see has to 1 do with whY happens to savings which insurance companies realize because of the changes, whatever is in the final bill, the changes which are made. I would invite the members to look

I @ at page 30 ofthe Gladeck amendment, and on that amendment, a third of the way down the page is section 704, and section 704 is the section of the bill which would set the standards for the Inswince Commissioner to determine whether a rate increase was necessary or not necessary or whether rates were too high or too low. There is a clause (a)(2) which says, "Rates in a competitive market are not excessive."

Now, I realize this is a complicated legal argument, but if you stick with me, I think, I hope at least, you will understand - why I believe that regardless of whatever else we do in this legislation, even if somebody offers an amendment this &moon to change the definition of "injurf and somebody offers an amendment to cut the maximum benefit, if this language is not corrected any of those changes are not going to benefit the employers of this State, because what happens under this legislation is that there are two pieces to a late increase. Seventy-five to eighty percent of the premium dollar goes to pay medical bills and lost wages. Everybody agrees; all the versions are the same. That will be filed by the rating bureau, and that will require prior approval.

Everybody also agrees that the remaining 20 to 25 percent, which is the overhead and profit for each individual insurance company, should be requested individually by each of the 300- - plus insurance companies in the State. Everybody agrees about that, and everybody agrees that the first time that is done-because that is not the way we do it now-that the first time that is done, there should be prior approval. The problem is, what happens after the first time?

What this amendment does is to say it will be file and use, no prior approval, and in fact, that is substantially what was in the bill as it came out of committee. "File and use" means that the Insurance Commissioner, if she determines, based on looking at the prices being charged, that the rate for overhead and profit is too high she may institute a hearing process and they roll back that rate.

The effect of this language which I read, "Rates in a competitive market are not excessive," when put together with subsequent sections of ths article of the bill, would place a legal hurdle that the Insurance Commissioner, in my opinion, could never cross, and that legal hurdle is that she may not use her power to roll back the overhead and profit piece of the rate

8 increase unless she can make a findng that there is no competition in the workers' compensation insurance market.

There are over 300 companies selling workers' compensation insurance in Pennsylvania. There is no way that the Insurance Commissioner is going to be able to make a

JOURNAL - HOUSE 545

legally sustainable finding that there is no competition in that marketplace. As the Governor described to me, that is a fool's e m d .

Now, you say, well, so what; what difference does that make? The difference is that if in the future, because of the caps we placed on medicals and other things we have done in this bill, the Insurance Commissioner decides that the rating bweau should receive only half of what it asks for in a rate increase, the individual companies, freed from prior approval and freed fmm effective rollback under file and use, will be able to make that up by setting their overhead and profit piece of the rate at what they think they need to make up for what they believe was a shonfall in the lost-cost part of the filing.

Now, you say, why will competition not wrrect that? Well, the reason I think it will not correct that is because s e v d of the major caniers are going to float numbers out there, and they are going to say, we will go up by 25 percent. Maybe one of the other camen will say, well, you know, we want a little bit more of the market; we will go up by only 20. You are effectively going to have among the major caniers administered pricing like we used to see 20 years ago in the steel industry, and the market will settle at a number higher than would have been the case if the Commissioner had been able to review that pan of the rate proposal.

Mr. Speaker, all of the rest of the savings in this bill wuld be gone under that provision of the ratemaking process. Now, people may say, oh, well, that is not really going to happen; we trust the insurance companies; they are not going to do that, and even let us accept, for the sake of argument, that there is some merit to that. Why in the world would we ever want to write into the law a legal banier, if it hlms out the scenario which I think is going to happen is correct.

Mr. Speaker, if we really want rates to be reduced, if we really want to make sure that whatever savings come from the kinds of changes which we are going to make in the workers' compensation system go to the employers of this State, this provision cannot be in the version of the legislation which we enact. Mr. Speaker, for that reason I think we should defeat this amendment.

The SPEAKER. Representative Brown from Crawford County is recognized.

Mrs. BROWN. Thank you, Mr. Speaker. I rise in support of the Gladeck amendment A0623. It is an

excellent compromise bill, and 1 repeat, it is an excellent compromise bill.

I would like to take a little spin from this and talk specifically about the hearing-loss provision. This amendment addresses the problem of the vague hearing-loss language and libetal interpretations of that language, explains the size of the awards, and cuts down on the high cost and lengthy litigation of claims.

Current law does not define "complete" loss of hearing, so therefore, interpretation may vary from referee to referee and therefore unfair to the claimants. Through mass media advertising-and it is even happening in Clawford County-aggressive law firms are taking advantage of the


vagueness to solicit clients from among manufacturing employees and longtime retirees. As an example, I have Seco/Warwick, Channellock, and Meadville Forging in the Sixth District. Meadville Forging has settled three claims. They have four cases pending that would total approximately a half a million dollars in reserves. They have over 100 people that could submit a hearing-loss claim right now under current law.

This amendment would provide a clear definition of occupational hearing loss based on medical evidence rather than ad hoc testimony; provide standards for determining the degree of hearing loss and establish a threshold at which workers can receive compensation based on American national standard specifications for hearing test devices; provide compensation in proportion to the extent of work-related hearing loss; exempt employers from liability for any hearing loss acquired before employing the individual; permit an employer to require a hearing test at the termination of an employee to determine the amount of hearing loss and exempt the employer from having to provide compensation at a later date if the employee refuses to undergo a hearing test. It will also clarify the date of injury for the purpose of filing claims; provide a statute of limitations consistent with other workers' compensation injuries.

This proposed amendment would not reduce awards for hearing loss if the ability of the employee to hear is improved by the use of hearing aids; reduce the amount of awards in any way for workers with hearing loss who meet these qualifications.

In conclusion, we must help our businesses become more competitive with other States. You have heard this before on the floor. We must make Pennsylvania "business friendly." This amendment would move us in that direction. We must do something to reform workers' compensation and correct the hearing-loss Language.

I would ask that both sides of the aisle join me in supporting the Gladeck amendment. Thank you, Mr. Speaker.

The SPEAKER. The gentleman, Mr. Saurman, is recognized.

Mr. SAURMAN. Thank you, Mr. Speaker. Mr. Speaker, workers' compensation was designed to assure

that any worker injured on the job would be assured of all of his or her necessary medical expenses and compensation for lost wages. This system has been eroded by the addition of extended coverage payment for losses other than injury, fraudulent claims, malingering, and the cost of an unbelievably inefficient system of rendering decisions on the pail of workers' comp referees. This has sent premiums through the roof, and these increases in the cost of doing business have at a minimum driven our marginal businesses either out of State or out of business.

For those who are able to pay the increases, the cost of their product must and does go up, driving up the cost of living for everyone. And, Mr. Speaker, I need to emphasize, and I will be saying it every time that I have the opportunity, as we here in these chambers pass legislation or allow things to happen that increase the cost of doing business, that make

-- - -

it more expensive for our businesses to hction, it will result in increased costs, and as these increased costs are felt by our senior citizens on fixed incomes and by all of us in the economic system, it will drive up the cost of living and press down the ability of our dollars to purchase what they did. It

C will devalue and decrease our purchasing value.

The Gladeck amendment anacks many of the abuses of this system. It still assures that the benefits that were intended for the workers to receive remain.

Mr. Speaker, we have an opporhmity today to reform the workers' comp system which has gotten out of hand, and I would urge that you would support the Gladeck amendment. Thank you, Mr. Speaker.

The SPEAKER The Chair thanks the gentleman, Mr. Saurman, and R C O ~ N Z ~ S the gentleman, Mr. Eelfanti.

Mr. BELFANTI. Thank you, Mr. Speaker. Of course I rise to oppose the Gladeck amendment. Of all

the amendments that will be offered today and debated on the floor, this is the most radical.

I could belabor this debate by interrogating Mr. Gladeck point by point on this amendment, but I will not. Let it suffice to say that this language, after review by the business community and after the series of many, many hours of meetings with business leaders, is recognized as being radical. It in no way can be considered or construed as a compromise.

The business community takes many hefty hits in the language contained in this amendment. Smaller hits are taken by labor, by the medical community, by the attorneys, but guess who takes no hit in the Gladeck amendment? No hit is J

taken by the insurance industry. They love this particular amendment. They are pail of the problem; they must be pail of the solution. In what we have before us, the House version of SB I, everyone takes a hit.

In some of the amendments that will be offered later today, many of which I will oppose, at least they can be considered as compromise amendments, somewhere between the language of the Lloyd proposal and what came over here as Mellow- Madigan IU in SB 1.

This language is out in outer space. It is written for, it is by, and it is of the one industry in this State who does not want to take any responsibility for the ever-escalating rates in workers' compensation. and that, Mr. Speaker, is the insurance industry. It leaves alone the r e s e ~ n g practices that allow the insurance industry to disguise and hide tens and hundreds of millions of dollars of profit.

I can go on and on, and 1 will not, as I said, belabor this issue. But let me say that if the Gladeck amendment is adopted, we will be back here on this floor because it is sure to fail in the Senate, let alone will not be able to stand the muster in the Governor's Office, who has time afler time after time cited many of the provisions of this language as those provisions that would require a veto from his ofice.

I urge the ladies and gentlemen to look at the other amendments as they are brought out and debated on the floor today, but please, do not make us come back here for another full day of debate on an amendment that is going to go

C

- - -- . . - - - - - -

lot of it attributable to the cost of workers' compensation. It Mr. BELFANn. Mr. Speaker? Point of order, Mr. Speaker. seems to me that if we are really tlying to refom the workers' The SPEAKER. The gentleman, Mr. is comrnnsation svstem. that what we should be twine to do is


recognized. Mr. BELFANTI. Mr. Speaker, the gentleman is giving

remarks that would otherwise be reserved for a final passage vote. We are talking about the Gladeck amendment, and he is not addressing himself to the Gladeck amendment but to the entire issue of workers' compensation. I would just suggest that he be mrected to stick to the issue at hand. Thank you.

The SPEAKER. The gentleman's point is well consider4 and the gentleman is politely admonished to refer only to the amendment in his debate.

nowhere and does not enjoy the broad support of the business community that we are all here espousing to be supponive of and hoping to roll back rates to where they were prior to December 1 of last year and to continue to look at cost reductions that are contained in the bill that we are debating and in fact in some of the amendments that will be offered later.

I oppose the amendment, and I encourage members on both sides of the aisle to do the same.

The SPEAKER The Chair thanks the gentleman and recognizes Mr. Dent from Lehigh County.

Mr. DElYT Thank you, Mr. Speaker. I rise in support today of the Gladeck amendment, which

I believe represents real reform to Pennsylvania's workers' compensation system.

As most of us know, Pennsylvania is a negrowth State; that is, we are not growing in population. In fact, during the past 10 years, we grew by less than one-tenth of 1 percent, and this is due in large part to Pennsylvania's negative, unfavorable - business climate. We must recognize this. One of the reasons why our business climate is so negative is because of the present workers' compensation system.

There are two situations I would like to briefly share with you today of job losses in the Lehigh Valley which I think are noteworthy: First, one in the city of Bethlehem, 48 jobs. Now, I spoke to the owner of this company, Mr. Max Stetuler, and I will read to you what was written in the paper, the Morning Call, July 5, 1992. It said, quote, "As a result of operating in Pennsylvania, Stettner faces corporate net income tax and workers' compensation costs that make it vimally impossible for him to compete effectively with a Virginia company now infringing on his turf in the Philadelphia market.

"It's a problem that's easy to solve for Stettner." - POINT OF ORDER

Mr. DENT. Mr. Speaker, my statement is relative, I believe, to this amendment, but I will refrain if that is what is requested.

But the point is and what I am trylng to say is, 48 jobs are being moved from the city of Bethlehem to Camden, New Jersey. I will also state for the record we lost another plant, Ingersoll-Rand, now called Ingersoll-Dresser Pump. 220 jobs, and the only reason they would publicly state for thls job loss

to me was the fact that the worked compensation system is just atrocious. They pay nearly $500,000 out in workers' compensation in Pennsylvania; in Virginia they pay $3,000. They are consolidating in Virginia. Two hundred and twenty jobs will be lost, most of which are United Steelworkers jobs. This was just announced 2 weeks ago.

In closing, I would like to say I urge the members of this House to suppo~t Mr. Gladeck's amendment. Thank yw very much.

The SPEAKER The Chair thanks the gentleman and recognizes Mr. Fargo.

Mr. FARGO. Thank you, Mr. Speaker. The previous speaker from the other side of the aisle talked

about companies that are getting hit, employers that are getting hlt, and only the insurance companies are going to benefit by this. I guess he must Live in a different area of the State than I do and has different kinds of employers, because everything that I have heard from many, many employers is that they want this particular amendment because this particular amendment will put the Mellow-Madigan proposal back into being.

As far as insurance companies are concerned, my histoly or what I have learned, as I hear more about the problems of workmen's comp, is that the insurance companies, an awful lot of them in Pennsylvania, are refusing, refusing to write workers' compensation. They are refusing to write it for the same business reason that anyone else decides that they do not want to be in business, and that is that they cannot make a profit, and so they put it into the SWIF (State Workmen's Insurance Fund) system, and the SWIF system is in muble already. If we do not change this process, we are going to be coming to this legislature asking for a bailout of the SWIF fund, and this amendment does change that process.

You just heard from another speaker who listed the number or a lot of the businesses that are going out of business, and a

. -~~ ~ , ~~ , - ~~

to reduce the cost to the people who pay the premiums. In I oder to reduce the ,t, we b v e got t i not add more cost as does the present piece of legislation that we are looking at, and this amendment, the amendment of Representative Gladeck does eliminate some of the things that are in the present bill that add to cost.

Can you imagine a reform bill that is going to add the cost of increasing the statute of repose from 300 weeks to 500 weeks? This is going to add so many more cases to the workers' compensation system and is going to increase the premium. That is in the present bill. This is an effort to reform workers' compensation to reduce costs, and what does the present bill do that is corrected by the Gladeck amendment? It is going to add more cases and make it much more expensive as far as the employer is concerned.

What is another thing that the Gladeck amendment does in eliminating an increase in cost? It increases the COLA that is added to it. Can you imagine when we are trying to reform the

548 LEGISLATIVE

system to reduce the cost to help businesses, that we are going to add an additional cost, an additional cost adding COLA's and additional benefits to the present system.

Another additional cost that the Gladeck amendment will eliminate is the business-labor advocate. Another bureau, another gwernment bureaucracy, another layer that is going to be extremely expensive, and who is going to pay for it? Well, the insurance companies are going to pay for it, because they are the ones who are going to have to pay for the government bureaucracy that we are setting up, but of course, that means that the premiums are going to go up, and we are here tying to get the premiums Qwn.

So I certainly believe that it is necessary that we pass the Gladeck amendment. Those are cost increases, but there are so many other changes that the Gladeck amendment makes to SB 1 as we presently see it that should be considered. It helps the officers of those small companies that presently are paying premiums on their own wages and not in a position to ever realize any benefits from it.

It also eliminates the offset provisions that are presently in SB 1 that instead of helping the workers' compensation system, it is going to help the unemployment compensation system, or at least it is going to charge the workers' compensation when they eliminate the double-dipping. All of these things are corrected by the Gladeck amendment.

I think it behooves us all to vote for the Gladeck amendment and see if we cannot, number one, try to make it so that the employers in Pennsylvania get a break and can continue to employ. I do not know how we can possibly believe that we are helping employees by chasing employers outside Pennsylvania, and that is what the present SB 1 is going to do.

Let us get this amendment in and be on our way as far as the workers' compensation reform is concerned.

The SPEAKER The Chair recognizes Mr. Gladeck. Mr. GLADECK. Thank you, Mr. Speaker. Mr. Speaker, I would Like to take this body back to Mr.

Lloyd's comments where he referred to the rating section on pages 29, 30, and 31 in my amendment.

It seems to me that what Mr. Lloyd is saying is that he does not agree with open competition and he does not agree with the marketplace which happen to be the basis of our economic system. He seems to have an innate fear of competition, and he seems not to have remembered that I believe the Governor of the State of Pennsylvania suppolted competitive rates as they are based on the Maryland system, which is what my amendment does. Maryland has devised measures to determine whether or not a competitive market exists. There are areas in my amendment that provide recourse to the Insumnce Commissioner that if in fact a noncompetitive, a nonlegitimate rate is in effect, that he or she would not agree

mresentative Belfanti. is in fact not a radical amendment. It I Barlev G R ~ Masland Schuler


amendment that I offered last week in the Labor Relations Committee, and it is a funher compromise from the original Mellow-Madigan bill.

The truth of the matter is, we are losing jobs and ind* to other States, and if you happen to live in the city of

C Philadelphia, you know exactly what I mean, because if you live in Phi!adelphia, a business there can give an automatic 4.3-percent increase in an individual's salary and not lose any money off the bottom line. I am referring to the wage tax. He can also cut his workmen's wmpensation costs simply by moving to the State of New Jersey, and if his workers do not live in the city, he may be able to keep his work force.

What incentive, I ask you, is there for business and industry to stay in this State or to come to this State when this House refuses to act in a responsible fashion?

This amendment is not the begin-all, the end-all, but it is a legitimate start towards a real competitive workers' wmpensation system that can enable us to be competitive with other States in the northeastem pan of the United States.

If this amendment passes, it is my estimation that the Senate of the State of Pennsylvania would in fact concur with our action. I do not believe that is the case if the Lloyd amendment passes.

Thank you for your attention, and I ask for an affirmative vote on my amendment. Thank you.

The SPEAKER The gentleman, Mr. Steil, is recognized. Mr. STEIL. Mr. Speaker, I rise to suppolt the Gladeck

amendment. This body has heard a lot this morning about where the rr*

blame comes from with the workmen's compensation problem. I do not care where the blame comes from. It is what are we going to do about it and who should benefit, and the "who should benefit" is the key issue. In my opinion, this should be a pmbusiness issue; workmen's cornpensation reform should benefit business.

Who else in this State is going to put our people to work and who else is going to generate revenue that this State so desperately needs? It does not make any difference what the various provisions are of the bill. As long as the overall context is viewed as a pro-business bill, it should be supported. Therefore, I urge all members to support this bill because it is the most prnbusiness workmen's compensation bill before us. Thank you, Mr. Speaker.

The SPEAKER. The Chair thanks the gentleman.

On the question recumng, Will the House agree to the amendments?


YEAS-87

~ d o l p h Fanner Lee Ryan

with it and would be able to rescind it. It is my feeling that we have to recognize that we are all

from the same State. This amendment, in the words of

Allen Fichter Leh Sather Argall Flea@e Lynch S a u m n

Flick Maitlsnd Saylor ~~k~~ Gamble Marsico S c h a t

1993 LEGISLATIVE

B u t Gadshall Miller smith, B. Bush GNPP Nailor Smith, S. H.

Nickol Snyder, D. W. 8 %2uick Harley Hasay N ~ c e SteiI

Clark Heckler penel stem ClyrnR Hemessey P a i t Strinmatter Cohen, L. I. H-n Phillip Tomlinsoo Cornell Hershey Piccola True D e w w Hew pins Tulli Dent Hutchinsan Plallr Vaace Dmse Jadlouiec Reber Waugh Egolf King Reinard Wright, M. N. Fairchild h u b Rohrer zug . FaO

hwless Rubley

NAYS-I 14

Acoata f ajt Lucyk Santoni ~ s l o Fee ~ande l ina Sc r imt i Bebblwes Freem~n Markosek Staback Beludi Gsonoo Mayemik Stsirs Belfanti George McCall Steel- Bishop Giglimi McGeehan Steighner

Qordner McNally SteCler Blsum BoYes GWtzn Melio Stish Butkovitz Haluslra MicUovic SNda w o n H m a Mihalich Sum Callagimne Hughes Mundy Tangetti Cspbiaaca Itkio Murphy Taylor, 1.

* Cam James O'Brien Th~mss Carone lsmlin O'Donnell Tigue cawley Iosephs Oliver Trello Civers Kairsr pesn Tricb coha, M. Kmlnic petrarca Uliana Colafella Keller Petmne Van Horne Calairm Kemey Pistella Vmn Corrigan Kirkland Preston Vilali 1 Cowell Krebs ~symond Williams

I coy Kukovlch Richardson Wogan Ri-er WOrmak I C W LaGroita

1 BleY Laughlin Ritter Wright, D. R 1 DeLuca Lederer Raberts Yaadrisevits - De- Lescovitz Robinson Yewcic

~otlahlcn L = b I r y Roebuck Durham Linton Rmney Dew-, Evans Lloyd Rudy Speaker

NOT VOTING-0

EXCUSED-2

Olae Taylor, E. Z.

The question was determined in the negative, and the amendments were not agreed to.

JOURNAL - HOUSE 549

There is no need for a Republican caucus, and we will see you on the floor.

TRANSPORTATION COMMITTEE MEETING

The SPEAKER The gentlema% Mr. Petrarca, is recognized.

Mr. PETRARCA. Mr. Speaker, immediately upon the recess, there will be a meeting in mom 302 of the Transportation Committee. Thank you.

The SPEAKER Room 302, T m p x ~ a t i o n Co~nmittee immediately upon the recess; room 302, Transportation Committee.

VOTE CORRECTION

The SPEAKER. The gentlema% Mr. Wogan, is recognized. Mr. WOGAN. Thank you, Mr. Speaker. On amendment 0651 for some reason I was not recorded.

I would like to be recorded as voting in the affirmative. The SPEAKER The Chair thanks the gentleman. His

remarks will be spread upon the record.

The majority leader asks for recognition. The Chair recognizes Mr. Itkin.

Mr. lTKIN. Mr. Speaker, I just want to make the members aware of the fact that we have numemus amendments to this legislation. We want to complete our deliberations today.

I am going to ask that the Democratic caucus be rather brief, but we want to come back on the floor promptly at 2:30. 1 ask all the members for their cooperation; 230, back on the floor.

RECESS

The SPEAKER. This House stands in recess until 2:30.

AFTER RECESS

The time of recess having expired, the House was called to order.

FILMING PERMISSION

The SPEAKER. The Chair announces that Christina Etshied and Thomas Herdman of the House Democratic bmadcast team will be filming during the session today for SB 1.

DEMOCRATIC CAUCUS

The SPEAKER. The Chair recognizes the gentleman, Mr. Coy, for the purposes of calling a caucus.

Mr. COY. Mr. Speaker, the majority leader indicates that he will ask the House to be recessed for lunch at this hour, and we will therefore have a Democratic caucus at 2 p.m.; at 2 p.m. the Democratic Caucus will meet in room 140.

The SPEAKER. The Chair recognizes M r G e d . Mr. GEIST. Thank you very much, Mr. Speaker.

CALENDAR CONTINUED

CONSIDERATION OF SB 1 CONTINUED

On the question recurring, Will the House agree to the bill on third consideration as

amended?

BILL PASSED OVER TEMPORARILY

The SPEAKER. We are temporarily going to pass oczr-temporaly-tempfily pass over SB 1.

LEGISLATIVE JOURNAL - HOUSE MARCH 30 . + Lawless Roebuck YNVEic MFRT Rohrer Zun

The House proceeded to third consideration of HB 105, PN 114, entitled: I

An Act amending the act o f December 19, 1990 (P.L.1372, No.212). known a s the Early Intervention Services System Act, further providing for intervention services for infants, toddlers and eligible young children with disabilities; expanding the membership of the Interagency Coordinating Council; further providing for the expenditure o f certain appropriations; and making editorial changes.

On the question, Will the House agree to the bill on third consideration? Bill was agreed to.

The SPEAKER This bill has been considered on three different days and agreed to and is now on final passage.

The question is, shall the bill pass finally? Agreeable to the provisions of the Constitution, the yeas

and nays will now be taken.

YEAS-200

Armta Fargo Lintan Ryan Adolph P a m W O Y ~ Santoni Allm Fee Lynch Sather &dl Fichter Maitland Saurman w n g Fl@e Msnderino saylor BaLcr Flick Mark& Scheeiz m9 Freenun Marsim Schuler BaRirPo Gamble Masland Scrimti Bebko.lona Bdudi Bdfrnti B i d i n Bishop B1.m Boyes Bmwn &nt Burh ButLaitz BIulon Csltagime cq@anca Cam Carone Cswley CessaI Chuiwick Civera Clark Clymr m e n , L. I. Cohm. M. Cdafella Colaina Comell Conigaa Cavell Coy CUW Daley Dehca - Dent Dcrmody DonaNcci

Oanoon Odd George Oalssh Giglioni G l k k Godshall C o r k O ~ i t v Gnypo Haluslrs Hanna Harley Hasay Hskler H e n n v Haman H d e ~ Hess Hughes Hutchinson Itkin ladlouis Jams lamlin Jossphs Kaiser KaRmie Keller Kenney King Kirkland Krebs Kukovich LaOmtta Laub Laughlia

Msysnik McCaII McGcthan McNally Melio Merry Michlavic Mi-e Mihslich Mills Mundy Murphy Nailor Nickol Nyce O'Brim O'Donnell Oliver Penel Pesci Pelram Pecmne Ppltit Phillips Piccola Piatella Pin3 Platts Preston Raymond Reber Reinard Richardson Rieger Ritter Roberts Robinson

Snnmel M n i Smith, B. Smith. S. H. Snyder. D. W. Staback Stain Steelman Stti&er Steil Stem Staler Stish Strinmaner Shlrla Sum T a n m i Taylor, 1. Thomas Tigue Todinson Trello Trish True Tulli Uliaoa Vance Van Home vmn Vitali Waugh Williams Wogan Wozniak Wright, D. R Wright, M. N. Yandrirevits

- ~~

Egolf Lee ~ m o e y Evans Lch Rubley Dewgee, Faimhld Leswitz Rudy Sasker

C Fajt hh&,

NAYS4

NOT VOTING-I

rucyIr

The majority @red by the Constitution having voted in the affirmative, the question was determined in the affirmative and the bill passed finally.

Ordered, That the clerk present the same to the Senate for concurrence.

The House proceeded to third consideration of HB 111, PN 479, entitled:

An Act amending the act of May 26. 1988 (P.L.413, No.71). entitled "An act designating January 30. Franklin Delano Roosevelt's birthday, as 'Day of the Disabled,"' redesignating January 30 as "Pennsylvanians with Disabilities Day."

On the question I Will the House agee to the bill on third consideration? rJ Bill was agreed to.




YEAS-201 Acorta Fergo Linton Ryan Adolph Farmer Lloyd Sn0lor.i Allen Fee Lu& Snlher Argall Fichter L w h S a m Armstrong Fleagle Maitland Sayior Baker Flick Ms~~dcrino SchDdz Badey Freeman Markosek Schuler Battist0 Gamble Marsiu, Scrimenti Bebkelones Cannon Madand Scmmcl Belardi Geiat Mayemik Serafini Beifanti George McCall Smith. B. Birmelin Gedach McGeehan Smith, S. H. Bishop Gigliotti McNally Snyder, D. W. Blaum GIadwk Melio Shback %s Gadshall Merry %airs Bmwn Gordner Miehlovic Steelman Bunt Bush Butkovilz Buxton Caltagirone Cappahanca Cam Camne

Gmitza GNppo Halush Hanna Hsrley Hasay Heskler Hennessq

Micaaie Mihalich Miller Mundy Murphy Nailor Nickol Nyce

Sttighner Steil Stem Stella Stish Strinmatter Sturla Surra

LEGISLATIVE JOURNAL

Cawley Henrvn O'Bdcn T a n m i c a r H d e y O ' b m e l l Tagor, 1. Chulwick Hesd Oliver Thomas Civrm Hugba Penel Tigve Clark Hvtchinson Pesci T d i n m a~mer Itkin W r c a Trdlo Cohm, L. I. ladlowiec Petrone Trich C o h q M. l a m Penit True Colafdla Jml in Phillips Tulli Colim.0 losephs Piccola Uliana Corndl Kaiser Pistella V a n e w g a n I(swrols Pins Van Home cowdl Keller Plam Vwn Coy Kenney Preaon Vitrli CW King Raymond Waugh D.ley Kirkland Rebsr Williams DeI~ca Krebs Reioard W W D W Kukovich Richadson Womiak Dent hcrn fieger Wright, D. R DRmady h u b Riner Wright, M. N. Dmameci Laugblia Robeas Yandriswits D m Lawless Robinson Yovcie D u r h n Ledem Roebuck zug Egolf Lee Rohrer

Acosta Adolph Allen Argsll Anwimng Baker Barley BPnirto Bebko-Jones klardi Belfaati B iml in Bishop Blwm B.Y.. Bmwo Bunt Bush Butkwitz Bvxton

~ " m s Leb Rmney Dew-, Cam Firchild Lescovirz Rublev Soeaker Fajt h d a n @ Rudy

N A Y S 4

NOT VOTING-0

EXCUSED-2

Olssz Taylor, E. Z.

The majority required by the Constitution having voted in the affirmative, the question was determined in the affirmative and the bill passed finally.


*

The House proceeded to third consideration of IIB 463, PN 514, entitled:

An Act amending the act of May 21, 1943 (P.L.302, No.140), entitled, as amended, "An act providing for the admission of children to, and their education and maintenance in, and their discharge from the Scotland School for Veterans' Children; prohibiting discharging children or taking children from said school, or children from leaving the same without an order of the Board of Trustees of the Scotland School for Veterans' Children; and prescribing penalties," further providing for admission requirements; and making an editorial change.

O n the question, Will the House agree to the bill on third consideration? Bill was agreed to.

C-r Chadwick Civaa Clark Clymer cobco, L. I. Coheo, M. Colafella Colim.0 Comdl

oempsey Dent Dermody Donalucci Dmce Dvrham Egolf Evans Fairchild Fajt

- HOUSE

YEAS-196

F-80 Lloyd Far",% hcylr Fee Lynch Fichtcr M a i t l d Fleagle Msnderino Flick Mdosek Freeman Manico Gamble Masland Gamon Mayemik Geist Mda l l Gwme McOeehao Gerlach McNally Giglioni Mdio Gladeck Merry Godshall Michlovic Gndea Mic-e Giuppo Mihalich Haluska Miller Hama Mundy Harley MUT~Y Hassy Nailor Heckler Nickol H m e g v y Herman O'Brien Hershey O ' b m e l l H e s Oliver Hughes P d Hutchi- Pdnrca I tbn Petme Iadlmviec Penit lames Phillips Iamlin Picmla Josephr Pistella Kaisec Pi- Kasunic Platts Keller Reaon K m e y bymond King R& Kirkland Reinard Kukovich Richudson L a G m Rieger Laub Rille¶ Laughlin Roberts Lawless Robinson Lederer Rosbuck Lee R o w Leh Rmney Lerovitz Rubley Levdansky Rudy Linton

NOT VOTING-0

EXCUSED-2

Taylor, E. 2.

RP Ssnroni SItheI Ssunnm saylor Sehsea Sehuler S c r i m t i Srmmel Scrafini Smith, B. Snrith. S. H. Snyder, D. W. St.bPfk Stairs stcslm Steiphner Steil Stem Stetlet Stirh SLrinmkI Shxls Surra Taasreni Taylor, 1. norms Tomlinson Trello Trich True Tulli Uliana Vnafe Van Home Vwn Vitali Waugh William WW' Waeoiak Wright. D. R Wngbt. M. N. Yandrisnits Ywvcic Zug

The SPEAKER. This bill has been considered on three different days and agreed to and is now on final passage. -* The question is, shall the bill pass finally?

Agreeable to the provisions of the (:onstitution, the ycas and nays will now be takcn.



BILLS ON THIRD CONSIDERATION CONTINUED


The House proceeded to third consideration of HB 464, PN 515, entitled:

FILMING PERMISSION

The SPEAKER John Dille of the House Republican video team will be filming the proceedings today during the debate on SB 1.

An Act amending the act of May 27, 1893 (P.L.171, No.1 IS), entitled, as amended, "An act providing for the acquisition of land and the erection, equipment, management, and operation of the Scotland School for Veterans' Children; the maintenance of children admitted thereto, and regulating the admissions to and discharges from the said Scotland School for Veterans'Children," further providing for the obligations of the superintendent as trustee.

c w r i g a Kellcr plans Vm Horn Cowell Kenney ~rsraon v a m Coy Kiag Raymwd

Kirklaad w e Ez ~ e b a William

~ ~ b s Reinad W w n DeLuca KuLovich Rish.rdson Womiak

C

On the question, Will the House agree to the bill on third consideration? Bill was agreed to.


The question is, shall the bill pass finally? Agreeable to the pmvisions of the Constitution, the yeas


AEpM AMP^ Allen WI d B B Baker Barley Bmiato BebbJottes Belardi Belfanti B i d i n Bishop Blaum Bayes Bmwn Bunt Bush &tlrovllz BUXtOn Calta&mne Cappabisnca O m Camne Cawley C-r Chadwick Civna Clark Clymer Cohen, L. I. Cohen, M. Colafella

Fajt Fargo Farmer Fee Fishter Flesgle Flick F m o Gsawa Geiat George Ocrlach Giglimi Gladsk Godshall OlUiVa Gnqrpo Halvrka Hama Harley Halay Heckler Hennessey H e m n Henhey Hess Hughes Hutchionan Itkin Jadlowisc James Jamlin J-hs

Drucc Ledom R d w k ZW Durham Lce Rohrer Egolf Lch RrnaeY Dew-, Evans Lsscwik Rubley sP=h Fainhild Levdpmky

Gamble Pegi Strittmatta Vitali Gordaer

NOT VOTING4

EXCUSED-2 Olarz Taylor, E. Z.



Linton Lloyd h F y k Lynch Maitlaad Mandelino Mackosek Marsieo W a n d Mayernik MsCaII McGehan McNally Melio Merry Micblovic Micozie Mihalich Miller Mundy Murphy Nailor Nickol Nvcs 0'Bcien O'Domell Oliver Penel Pnrarca Pnmne Penit Phillips Piccola

Rudy Rysn Slotoni Satha S a u m a Saylor SEheQz Sehula Scrimenti Snnmsl Senfini Smith, B. Smith, S. H. Sovier. D. W sihack Stain Steelman sl€ighnet Svil Stem Stdlcr Stish Sturla suma Taogretti Taylor, 1. Thomas Tigue Todinson Trello Tnch True Tulli

Colaim Kaiser Pistella Uliana Cornell Kasunic Pitts Vance

The House proceeded to third consideration of Ell 559, PN J 610, entitled:

I An Act amending the act of August 26, 1971 (P.L.351,No.91), known as the State Lottery Law, imposing restrictions on the

I resale of lottery tickets or shares; prohibiting the sale of lottery tickets from other jurisdictions; and increasing certain penalties.

On the question, Will the House agree to the bill on third consideration? Mr. STEIGHNER offered the following amendments No.

A0672:

Amend Title, page 1, line 6, by inserting after "appropriation," "

providing for certain applications for lonery machines:

Amend Bill, page l,by inserting between lines 11 and 12 Section I. Section 7 of the act of August 26, 1971 (P.L.351.

No.91). known as the State Lotten Law, is amended bv addinn a subsedtion to read:

- Section 7. Lottery Sales Agents; Qualifications;

Prnhihitinnc -8

inserting 2

Amend Sec. 1, page 1, llnes 12 and 13, by striking out "of August 26, 1971 (P.L.351. No.91), known as the State Lottery Law"

1 1993 LEGISLATIVE JOURNAL - HOUSE

- - - line and inserting

Section 3. This act shall take effect as follows: (1) The amendment of section 7 of the act shall take

effect immediately. (2) The remainder of this act shall take effect in 60

days.

Amend Sec. 1 (Sec. 9), page 2, line 6, by striking out "No" and inserting

Except as provided in section 7(e). no Amend Sec. 2, vane 2, line 15, by striking out all of said


@ The SPEAKER On the question, the Chair recognizes the gentleman, Mr. Steighner.

Mr. STEIGHNER Thank yoy Mr. Speaker. Mr. Speaker, it seems unfair to me to have literally

hundreds of businesses in Pennsylvania who are offering these out-of-State lonery tickets to the public, Pennsylvania businesses and vendom, who have gone to our own Depmment of Revenue and applied for a Pennsylvania lottery machine and have been turned down.

This amendment, Mr. Speaker, would order that the Department of Revenue must offer a sulvey to be completed - within 90 days for these vendors to give them the oppormnity to sell Pennsylvania lottev tickets.

This has been an agreed-to amendment, at least with the prime sponsor of the bill, and I would ask for the wncwTence of the House.

The SPEAKER The Chair thanks the gentleman and recogniles the gentleman from Washington County, Mr. Trich.

Mr. TRICH. Thank you, Mr. Speaker. To reiterate what Representative Steighner has indicated,

this is an agreed-to amendment. This will address some of the - concern that vendors have throughout the Commonwealth, and therefore, I would urge my colleagues to vote in the afftrmative.



YEAS-197

A c m Fail Lintom Rvan

Buxton Cdlagimne Cappabianca Cam

Adolph Fargo Lloyd Santoni F m Lynch Sather

Arnall Fee Maitland Saumn &mng Fichter Manderino Saylor Baker Fleagle Markosek Scheetz Barley Flick Marsiso Schuler Banisto Freeman Maslaod Scrimenti Beblro-Jones Gamble Mayemik SemeI

Camne Cawley C- Chpdwick Civem Clark Clymer Coben, L. 1. Cohen. M. Colafella Cola- Comll Conigan Cowell coy cuny Daley DeLuca Dempsq. Dmt D ~ Y Dooameci Dmce Durham Egolf Evans Fairchild

Olae

Haluska Hanna Harley Hssay Heckler Henn-=Y Hermso H d e y H- Hughes Hutchinson

Nickol N ysc O'Bdm O'Domell Oliver P d Pasi Petrarca P m n e

ltkin PRtit Jadlavier: Phillips l a m Fiecola lamlin Joseph Pitts Kaiser Platts Kasunic Preston Keller Raymond Kenney Reber King Reionrd Kirkland Richardson Kukwich Rieger LaGmtta R i m Laub Robnts Laudin Robinson Lederer Roebvsk Lse Robrn Leh Rmoey Lcscwitz Rubley

Rudy

NAYS-4 Lawless beylr

NOT VOTING4

EXCUSED-2

Taylor, E. Z.

553

S@er stid - S t r i U ~ Shlrln Suns T 4 Taylor, 1. w~lsl

Tomlinaa Tnllo Tdch Tme U l i m vaoce Van Home van Vitali WauBh William. WoBan woania Wright, D. R WdgbG M. N. Yandrimits Yewcic zut3

Dew- speaker

The question was determined in the affirmative, and the amendments were agreed to.

On the question, Will the House agree to the bill on third consideration as

amended? Mr. GIGLIO'ITI offered the following amendments No.

A0633:

Amend Title. Dane 1. lines 7 throunh 9. bv shikinn out all .. - . - . . - of said lines and inserting

providing for the sale of ont-of-State lottery tickets.

Amend Bill, page 1, lines 12 through 20; page 2, lines 1 through 15, by striking out all of said lines on said pages and inserting

Section I . The act of August 26, 1971 (P.L.351, N0.91)~ known as the State Lottery Law, is amended by adding a section

Bu, Gordner Mthaltch Stnghner subsection (a) Bush Cinntza Mtller Stal (c) The ~roceeds from the surcharge under subsection (b) &tkovltz C N ~ Mundy Stem shall be transrnltted to the State Lonew Fund.

BPlardi Gannon McCall Senfini Eelfanti Geist MGeehan Smith. B. Birmelin George McNally Smith, S. N. Bishop Gerlach Melio Snyder, D. W. Blaum Gigliotti Merry Stabask

Gladsk Michlovic Slain Emwn Gdshall Micome Steelman

to read: Section 9.1. Sale of Out-of-State Tickets.-(a)

Nohvithstandinp any other provision of law to the contrarv. the secretary shall enter into a one-year contract to sell out-of-State lotterv tickets if requested by another state or anent thereof.

(b) There is hereby imposed a surcharge of ten ver cent (10%) of the sales price on each lotterv ticket sold under


want to vote on the bill but if they are aware that it does create The SPEAKER The gentlelady from Chester, Mrs. Taylor's a fiuther expansion ofgambling they may want to vote against

name will be added to the master roll. 1 it.

Section 2. This act shall take effect in 60 days.

; On the question, Will the House agree to the amendments?

AMENDMENTS WITHDRAWN

The SPEAKER On that question, the Chair recognizes Mr. Gigliotti.

Mr. GIGLIOTI'I. Thank you, Mr. Speaker. I am going to withdraw this amendment. The SPEAKER The Chair thanks the gentleman.

LEAVE OF ABSENCE CANCELED

I plan to vote against it, but saying that, I understand the CONSIDERAT1ON OF 559 'ONnNUED 1 reason for the amendment. Thank you. Mr. S ~ a k e r ,

Therefore, I would ask my colleagues to be suppomve and thank Mr. Gigliotti for his willingness to work with us on this issue.

The SPEAKER The Chair thanks the gentleman. The gentleman, Mr. Clymer. from Bucks.

C Mr. CLYMER Thank you, Mr. Speaker. Mr. Speaker, I certainly understand the reason for this

amendment. It is certainly to correct a problem that could be a vety serious one for tbe Pennsylvania Lottery regarding the sale of out-of-State lonery tickets. However, because there is that possibility of further expansion of gambling in the Commonwealth, though it may be a tradeoff, it is still there. For those members who may not be certain as to how they

On the question recurnnh ( The SPEAKER The Chair tha& the Will the-~ouse agree to;he bill on third consideration as

amended? Mr. GIGLIOTn offered the following amendments No.

A0634:

Amend Title, page 1, lines 7 through 9, by striking out all of said lines and inserting

providing for a compact to sell tickets. Amend Bill, page 1, lines 12 through 20; page 2, lines 1

through IS, by striking out all of said lines on said pages and inserting

Section 1. The act of August 26, 1971 (P.L.351, No.91), known as the State Lortery Law, is amended by adding a section

Pennsvlvania lottew tickets within their borders to sell those


The SPEAKER On that question, the Chair recognizes Mr. Giglioni.

Mr. GIGLIOTII. Thank you, Mr. Speaker. Mr. Speaker, I am introducing this amendment to permit

the State of Pennsylvania to go into contract with any other State that is willing to sell out-of-State lotteries, and I am asking everybody to support it. Thank you.

The SPEAKER. On the Gigliotti amendment, the gentleman, Mr. Trich, is recognized.

Mr. TRICH. Thank you, Mr. Speaker. Here again, after a great deal of dscussion it was

determined that as long as the Commonwealth of Pennsylvania would be able to secure contracts with other States around the country, where a reciprocal agreement could he reached so that there would be no net loss to the Pennsylvania Lottery Fund that certainly this is something that could be supported by myself and also by the Lottery Fund.



YEAS-174 AEosta Foe Linton Adolph Fichter Allen Flergle

Llayd bfylt

Argall F-n Lynch Banisto Garnblle Maitland Bebko-Jones Cannon Markwek Belardi Geist Maniw Belfinti Gmrse Madand Bishop Gerlach Maycmik Blsvm Giglidti Mffi l l %s Gladesk Mffieebn Bunt Gadrhall McNally Bush Gordner Melio Buthvifz Buxtoo Caltagimne Cappabiancs Cam Camne Cawley Ceswr Chadwisk Civera Cohen. L. I. Cohen, M. Colafella Colaiao Camell Conigan Cowsll COY curry Daley DeLuea Dempsey Dent Dermody Donatucei Dmce Durham

Gmit7a G ~ U P P ~ Hduska Hsnna Harley Hasay Hennessey H m n Henhey Hu+s Hutchinson ltkin Jadlowrec J a m Jamlin Josephs Kaiser Kasunic Keller Kenney King K~rLland Kukovich LaGrorta Laub h g h l i n Lawless

Merry Michlovic Micome Mihalish Miller Mundy Murphy Nailor Nickol O'Bricn O'Domell Oliver Penel PeEei param parone Pettit Pistella Mans Preston Raymond Reber &nard Richardson Rieger Ritter Roberts

Rudy R w SMtoni S a w n Saylor Scrimti Ssnml Sosfini Smith. B. Smith. S. H. Snyder, D. W. Stlback Stairs Stglmsn SIRghner Steil Stetler Stish Sturla S u m Tangreni Taylor, E. Z. Taylo~. J. Thomas Tomlingon Trello T"ch Tulli Uliana Vance Van Home Veon Vitali

LEGISLATIVE J01 ;TRNAL - HOUSE

Evms LedeRs Rabiluon Yovsic Fajt Lee Rabuck Fargo Lescmilz h e y Dew-, Fa- I P y h k Y Rubley SP=ker

Armstmug Egolf Mandaino Schgtz Baker Fairchild NY- SEhuler Barley Flick Phillips Stem B i d i n Heckler Piccala StrittmaM B m Hess Pi- Tigue Clark Krrbs Rohrn Tme ClYmr Leh Sather ZuP

NOT VOTING-0 I EXCUSED- I I



amended? Bill as amended was agreed to.


The question is, shall the bill pass finally?

On the question, the Chair recognizes the gentleman, Mr. Saurman.

Mr. SAURMAN. Thank you, Mr. Speaker. Mr. Speaker, this bill that is being pro@ is

protectionism. This is an issue that on a national basis has long been debated. We have debated it here in Pennsylvania as well. It is very difficult to imagine that we can put into law this kind of legislation without expecting that there will be retaliation and retribution from the other 49 States.

1 suggest that this is a dangerous precedent to set, and I would urge a "no*' vote on this legislation.

The SPEAKER. The Chair recognizes the gentleman, Mr. womiak.

Mr. WOZNIAK. Thank you, Mr. Speaker. May I interrogate the maker of this bill? The SPEAKER. The gentleman, Mr. Trich, indicates he

will stand for interrogation. Mr. Womiak is recognized. Mr. WOZNIAK. Thank you, Mr. Speaker. We recently had a very large multimillionaire winner in

Johnstown, Pennsylvania, and he played the Florida lottery. He used one of those electronic systems to buy the tickets-machnes, yes-and obviously a lot of people start playing these other lotteries throughout the Nation whenever the pot gets big. Will this bill prevent my constituent or any other constituent from playing other States' lotteries?

Mr. TRICH. Mr. Speaker, the best way to answer that one at this time is, based on the amendment that Mr. Gigliotti just proposed and was approved, as long as the State of Florida would have a reciprocal agreement, members in your locale as

well as elsewhere around the Commonwealth would be able to purchase tickets in Florida, but only if there is a reciprocal agreement. -

Mr. WOZMAK. Do we have a fiscal note as to how much this is costing Pennsylvania if we can even figwe that out.

Mr. TRICH. Actually, the fiscal note would show what it is costing Pennsylvania as a loss. It is not going to cost us in revenues that we are going to use but rather what losses would be entailed if we do not pass the legislation. That has been estimated at as much as $2.4 million annually.

Mr. WOZMAK. Thank you, Mr. Speaker. A statement on the bill. I, too, think this is protectionism. This is people's money

and they should be able to spend it the way they want to, and I am not going to be supporting this bill. Thank you.

The SPEAKER The Chair thanks the gentleman. The gentleman from Allegheny County, Mr. Fajt, is

recognized. Mr. FAJT. Mr. Speaker, I would like to interrogate the

maker of the bill. The SPEAKER The gentleman, Mr. Trick indicates he

will stand for interrogation. The gentleman may continue. Mr. FAJT. Mr. Speaker, I have been contacted by people

in my district who do operate these ticket receipt machines that sell out-of-State lottery tickets, and they have told me that this in fact will generate an increase in revenue in Pennsylvania because of people from out of State now buying lottery ticket receipts on the Pennsylvania lottery, and of course, I think you just said that your fiscal note shows that it is going to be about a $2.4-million net loss to Pennsylvania. I guess my question is, should we not have examined the truthfulness of these statements, and were there any hearings held on this bill?

Mr. TRICH. Mr. Speaker, although there were no hearings on the bill, I think the information given to you by your local merchants may be somewhat in error. Keep in mind that under current law, no other State in the country permits these types of electronic sales. So consequently, people fmm Pennsylvania can purchase tickets in the State of Florida, for example, or the State of California but no one fmm those States can purchase Pennsylvania tickets. So it is a one-way arrangement. This legislation will make that a possibility of being a tweway arrangement.

And secondly, what we are trying to do with the legislation as per Mr. Steighner's approach is to make certain that additional people will have an opportunity to get Pennsylvania lottery machines. Keep in mind there are only so many disposable dollars out there, and every time a dollar is spent buying a Florida ticket or a California ticket under present law, that is a dollar less that is coming to our own Lottery Fund for our own elderly programs.

Again, I would emphasize to my colleagues that the major emphasis of this legislation is to protect the funds that deal with the elderly of Pennsylvania. That is the main product. Any byproducts for winners and vendors is only secondary.

So again, I would ask that we consider that in our votes.

The SPEAKER For the second time, the gentleman from Camhria County, Mr. Wozniak, is recognized

Mr. WOZNIAK. Thank you, Mr. Speaker. Just one last time.

The maker of the bill said that thete is a loss of $2.4 million annually or some kind of contrived number that they do not really know how they came up with it.

My gentleman in Johnstown just bmught $28 million back to Pennsylvania, so I would say-and a very deserving man he was-but I think we ought to allow our people to buy tickets wherever they want, and I do not think we should be putting walls up, which this bill will do. Thank you very much, Mr.


Speaker. The SPEAKER The gentleman from Philadelphia, Mr.

Linton, is recognized. Mr. LINTON. Thank you, Mr. Speaker. Mr. Speaker, I, for one, have not been one who has been

a supporter of gambling in Pennsylvania. But it is clear when we had the Appropriations hearings and the Secretary of Revenue came before the Appropriations Committee, it is clear

Mr. FAIT. Mr. Speaker, another question. Do you know if any members of the theery Commission or the Department of Aging sat down with individuals who were operating these out- of-State lottery businesses to see if some compmmise could be anived at, such as a percentage of the out-of-State tickets being sold being given to or being charged by the Pennsylvania lottery, thereby increasing the revenues of the Pennsylvania lottery based on the out-of-State lottery sales?

Mr. TRICH. Again, Mr. Speaker, I would emphasize that at present, we cannot sell anybody else's tickets in this State. So what we would in essence be doing is tlying to negotiate a pmfit, a percentage, if you will, on profits that we now collect total. So it would actually be a way of defeating ourselves.

So consequently, I do not believe any discussions have taken place, because at this point, we would be negotiating for our own dollars, which does not make a great deal of sense.

Mr. FAJT. I would like to make a statement on the bill, Mr. Speaker.

The SPEAKER The gentleman is recognized. Mr. EAJT. I would just like to say that I think it is foolish

of our Lottery Commission not to even discuss this potential revenue-raiser with the individuals who are operating these out-of-State lottery businesses, and I think that the Lottery Commission certainly has a vested interest in this bill, as does the Department of Aging. I think all of us are concerned about the senior citizens and the viability, financial viability, of the lottery, but I think it is foolish to not even entertain a conversation with these other people and just dismiss their programs out of hand

I am pmbably going to end up voting for this bill, but I do so with mat reservations. Thank you. Mr. Soeaker.

.. . there was one thing established: that there is a certain amount of disposable income that is available in the Commonwealth of Pennsylvania.

various services we offer the senior citizens in this Commonwealth can continue to be provided, and it is clear that we are not going to be able to continue to extend gambling to the extent that we can continue to support those progmm. So we need to do all that we can do to preserve the lottery

C programs for our senior citizens, and if there is a limit on the amount of disposable income spent on gambling, we should try to preserve that those dollars are focused in the Commonwealth of Pennsylvania. Inasmuch as there is not permitted the sale or purchases of lottery tickets from Pennsylvania in other States at the moment, we should make sure that money that is spent on gambling, money that is spent on the lottery, is spent in the Commonwealth of Pennsylvania I think what this pmposal does is try to allow us to do that.

Because of that, I am supportive of this proposal. I think those of us who are trying to preserve our lottery funds for senior citizens should in fact be in support of HB 559. Therefore, I am urging and I am also supporting HB 559 on final passage, and I think all of us who want to make sure that we get the biggest bang for Pennsylvania investment and lottery preservation would support this proposal as well. Therefore, I ask for an affirmative vote. Thank you very much, Mr. Speaker.

The SPEAKER The Chair thanks the gentleman. The gentlemq Mr. Clymer, is recognized. Mr. CLYMER Thank you, Mr. Speaker. Mr. Speaker, Representative Trich and Representative

Linton have clearly outlined their reasons why this bill should be supported, and I am going to support this legislation '# because it is needed, and I would ask my colleagues to do the same. Thank vou.

On the question recuning, Shall the bill pass finally? The SPEAKER Agreeable to the provisions of the

Constitution, the yeas and nays will now be taken.

A c h Fee L c ~ k Saotooi Alleo Fleqle Lyoch S a t k Argall Flick Mailland Saylor Amdmng Freeman Maaderiao %be& Baker Gamble Msrkovk k h u l e ~

Geist Masland Scrimenti Baftirto Georae Mayeroik Ssmmel Bebko-Jones klardi &Ifanti B i d i n Bishop BIsum BOP Bmwn Bush Butkovitz

MCWI McGeehan McNally Melio Meny Mihalich Miller Mundy Mulphy Nailor

Serafini Smith, B. Smith. S. H. Snyder. D. W S t h c k Stain Steelman Stnghoer Steil Stam

B w o n Hasay Niskol SLetler Caltagimne Hsklsr Stnnmauer C a M a n c a Heon- O'Blieo Shlrls Csm H-n Oliver Sum C

It is also clear that this House has made an effort to I carone Hershey Peael tang rat^

preserve the Lonely Fund so that those programs that fund the Hess PRFi ~aylor. E. Z Hughes Petram Taylor, J.


chemvick Hutchinson Petmne Thomas I CONSIDERATION OF SB 1 CONTINUED Civm ltkin Pdtit Egue Clark . anrr

Jadlowiec Phillips Tomlimn James Picools Tmllo

Cohen, M. Jarolio Pistella Trich Colafella Josephs Pins T w C0laiz.o Kaiser nous Uliana Comgan Kasunic Preston Vance CoWal K d e r Raymond Veon Coy Kenney RebR Vital, CUnY King Reioard Waugh Dalw Kirlrlnnd Richardson Williams


amended? Mrs. DURHAM offered the following amendments No.

A0683:

Amend Sec. 2 (Sec. 104). page 2, lines 25 through 30; page 3, lines 1 through 7, by striking out "An executive officer of a" in line 25 and all of lines 26 through 30, page 2; and all of lines

k l nra K n b s Rienn Woapn I 1 throuah 7, page 3 and inserting

Dmce Laughlin Roebuck YRVFic Dumam Lsderer h n e y zug Evans LpsCovitz Rubley

. Bunt Farmer Coheo, L. I. Ficbter Comell Lawleps Dermody Leu Egolf Leb

Rudy Dew- Ryan Speaker

- . - An executive officer who was a sinnatorv of the articles of hncornorallon may elect not to be an ern~love of the cornoralion for the purposes of this act.

Amend Sec. 4 (Sec. 204), page 8, lines 5 and 6, by striking out "WOULD OTHERWISE RECEIVE" and inserting

receives Amend Sec. 8 (Sec. 306). page 19, line 26, by striking out

" ' N m and inserting eiahtv-five

Amend Sec. 8 (Sec. 306), page 19, line 27, by removing the colon after "-" and inserting a period

Amend Sec. 8 (Sec. 306). page 19, lines 27 through 30, by striking out "PROVIDED. THAT, COMMENCING WITH THE SEVENTH WEEK OF" in line 27 and all of lines 28 through 30

Amend Sec. 8 (Sec. 306), page 23, line IS, by striking out "FOURTEEN and inserting

+hi....

Adolph Cannon Mi-e

EXCUSED-1

Olssz

NOT VOTING-3 I

The majority required by the Constitution having voted in the affirmative, the question was determined in the affirmative

lyyLI

Amend Sec. 8 (Sec. 306), page 24, line 4, by inserting after 'GSarne.'' The maximum number of davs that an iniuted worker shall be mandated to go to such physician or other health care provider shall be thirtv davs. or fortv-five davs in the case of visits to a coordinated care organization. and the iniwed worker shall be entitled to visit a physician or other health care provider of his or her own choice for a second opinion.

Amend Sec. R (Sec. 306). Dare 24. lines 21 throunh 29. bv ~~. - ,.. - striking out "Any employe who, next following term&ation df

I the" in line 21 and all of lines 22 through 29 - and the bill passed finally. Ordered, That the clerk present the same to the Senate for

concurrence.

BILL ON SECOND CONSIDERATION

The following bill, having been called up, was considered for the second time and agreed to, and ordered transcribed for third consideration:

HB 678, PN 742.

GUESTS INTRODUCED

The SPEAKER The Chair would like to momentarily recognize a group of college students from Waynesburg College-Waynesburg College-in Greene County, Pennsylvania. , 4 1 0 ~ ~ with L~~ Wisniewski, dean of students-Leo is a former professional football player with the Baltimore Colts and the Indianapolis Colts-from Waynesburg College, Max Cummings, Tara O'Donoghue, Mark Dawson, Andrew Olson, and Ed Hunt. Welcome very much to the hall of the House.

-

On the quest io~ Will the House agree to the amendments?

The SPEAKER On that question, the Chair recognizes Mrs. Durham.

MIS. DURHAM. Thank you, Mr. Speaker. My amendment does essentially four things. Number one,

it limits the corporate officers who can be excluded under workers' comp to those officers who sign the registry when they inco~porate with the Department of State. It has some clarifying language so that the unemployment compensation and the workers' compensation setoff is clearer. It reduces the minimum wage fmm 90 percent to 85 percent, and in the section that addresses the amount of time that an injured worker must go to a doctor, it inc~eases it from 14 &YS to 30 days, but it allows for a second opinion if the injured worker sees the phrsician for 30 days or 45 days. Thank You. Mr. Speaker.

The SPEAKER. The Chair recognizes the gentleman, Mr. Lloyd.

Mr. LLOYD. Thank you, Mr. Speaker. Mr. Speaker, I oppose the amendment. The amendment

dces a couple of things which if we had not been attempting

558 LEGISLATIVE

to strike a compromise on this bill, I would like. One of those things, however, flies in the face of some commitments that we have hied to make, to Small business with regaxl to the definition of "executive officer."

In the bill which is before you, an executive officer has the right to opt out of being covered by the workers' compensation system, and tk definition of "executive officer" is either somebody who has an ownership interest in a subchapter S corporation or somebody in either an S or a subC corporation who m n s to earn more than three times the statewide average weekly wage, so that would be somebody who makes over $75.000.

Members should be aware of the fact that this amendment substitutes a new definition for "executive officer" which says that an executive officer is only a person who signed the articles of incorporation, and as most of you are probably aware, the people who sign the articles of incorporation can be only a handful of those people who ultimately end up owning part of that corporation and, in the case of management employees of a C copration, would very rarely be people who would fit within this definition of "executive officer."

Number two, Mr. Speaker, there is an issue on the second page of the amendment having to do with the so-called 5-day trap, and this language would remove from the bill the obligation of the employee to give notice to his employer when he changes doctors within 5 days. Now, once again, while that would be fine with me, what we have done in the bill is to try to recognize some of the complaints from the small business community as to why they needed that language, and so therefore, we have said that the 5-day rule would apply but it would not make the employee pay the bill unless it was determined that the small businessman had been prejudiced because the services provided by the health care provider were either unnecessary or unreasonable.

The two other things in this amendment, Mr. Speaker, which I oppose are the reduction in the minimum benefit from 90 percent to 85 percent, and what people need to understand is to whom this is going to apply. The cross-over p in t where this kicks in is with the person who is on minimum wage. The argument has to do with how much tax money that person is being saved from having to pay if he is on workers' comp, and of course, workers' comp is tax exempt. An individual who is at a minimum-wage job who is not employed 40 hours a week, if he makes $6,300 or less in a year's time or if he is a part- time worker and makes $6,300 or less and files on his own and has no dependents, he will, under State law, qualify for tax forgiveness and he will not pay any State income tax at all if he does not get hurt. If he has dependents, I think it is $2,300, I believe, for each additional dependent, and then it ratchets up with additional dependents. So a single person with a dependent who is working at a minimum-wage job is in all l ikel ihd exempt under tax forgiveness from having to pay any State taxes, so the fact that he got hurt and does not pay taxes on his comp does not save him any money at all.

Furthermore, the tipping point under the Federal Internal Revenue Code is that if the person is single and filing on his


own and makes $5.900 or less a year, he does not pay Federal income tax. If he is manied and is at a minimum-wage job or maybe slightly above aminimum-wage jobandmakes$lO,Ma & a year or less, he is exempt from Federal income tax, so that means that that person, the only taxes he would have paid if he had not been hurt would have been the Social Security, which is about 8-pint-something percent, and the local wage tax. So to take 15 percent off saying that that is the tax amount is really overdoing it on many of those individuals.

Furthermore, this amendment takes out any consideration for people who in the long haul are permanently disabled and happen to have been unlucky enough to have k n permanently disabled when they were on minimum wage or working part time.

The final thing in the amendment has to do with the number of days you have to see a doctor designated by the company on its list, and this amendment adopts a 30-day requirement rather than a 14-day requirement, which is in current law, but couples that with a visit to a doctor of your choice. While that is certainly preferable to what came over from the Senate, it is in fact a cost which the Senate bill does not impose, an4 Mr. Speaker, I think it would be better, rather than to confuse the situation, for 2 more weeks, it seems to me that 14 days is reasonable. There is no reason to go to 30 days and then to require that the employer pay for the cost of another doctor.

So, Mr. Speaker, for all of those reasons I would urge a negative vote on the amendment.

The SPEAKER The Chair thanks the gentleman. w The gentlema Mr. Gannon, is recognized. Mr. GANNON. I would like to interrogate the gentleman,

Mr. Lloyd. The SPEAKER The gentleman indicates he will yield to

interrogation. Mr. GANNON. Thank you, Mr. Speaker. Now, I am going to try to make this as simple as possible,

and I would like you to try the best you can to answer it as simple as possible.

Employee A earns $50 a week in his job. Employee A is injured at work and is entitled to receive workers' compensation. How much would that employee receive as weekly benefit under the current law for workers' compensation?

Are you conked about that question at all? Mr. LLOYD. Under current law, that individual would eam

one-third the statewide average weekly wage, which is $158. a

Mr. GANNON. All right. So he makes $50 a week; he gets injured at work. Now he will make $158 a week on workers' compensation.

Mr. LLOYD. Under current law, not under the bill but under current law, that is correct.

Mr. GANNON. Okay. Now, as 1 understand under Mrs. Durham's amendment,

that gentleman would receive 85 percent of his wages. Mr. LLOYD. That is correct.

C Mr. GANNON. Thank you, Mr. Speaker.

! 1993 LEGISLATIVE

The SPEAKER The Chair recognizes the gentleman, Mr. Gladeck.

Mr. GLADECK. Thanks, Mr. Speaker Mr. Speaker, I rise in opposition to the Durham I amendmenr Most specifically, I think it weakens the corporate

officer, the optional exemption that I think small business people in this Commonwealth hold near and dear to them. I think that her language is too restrictive, and on that basis. I would urge the members of this chamber to vote against the Durham amendment. Thank you.

The SPEAKER The gentleman, Mr. Studa, from Lancaster

Mr. STUIUA. Mr. Speaker, may I please interrogate Mr. Lloyd? 1 The SPEAKER The gentleman indicates he will stand for interrogation.

Mr. STURLA. Mr. Speaker, just to clarify one of the points made earlier by one of the speakers, current law says they would receive $158 if they were making $50. Under your bill, I - they would receive 90 percent of that $55, or $45. Is that correct?

Mr. LLOYD. Ninety percent of $50; $45. Under the Durham amendment, they would receive $42.50. -

Mr. STURLA. Thank you. The SPEAKER. The gentlelady, Mrs. Durham, is

! recognized for the second time. Mrs. DURHAM. Thank you, Mr. Speaker. Mr. Speaker, the language about the cotpolate officer was

a direct result from business contractors that are in my legislative district. My legislative disuict borders the States of New Jersey and Delaware. What is happening is they are being outbid because of this pmvision. The other thing that is happening or the other thing that they are concerned about is - that if you have a corporation and there are 10 employees, they can have 10 employees be officers of the corporation and be exempt, and that would make it very difficult for them to be able to bid competitively.

What my amendment does is it makes it a fair playing field. Evexybody gets the same amount so that you eliminate a situation where you have a contractor who has decided to make an employee an officer merely for the fact that they do not want to pay the workers' comp, and what happens is the honest guy winds up paying the freight. That is why that came about.

One of the things that small businesses have been complaining about is the minimum wage. That is why the minimum-wage pmvision is as it is. This is a compmmise that I have offered to txy to help the small businesses in my legislatjve district.

I urge you to suppon the Durham amendment. Thank you.

On the question recurring,

'8 Will the House agree to the amendments?


YEAS-9

JOURNAL - HOUSE 559

Civen Gamon P d Rabinson m a m ~ ' ~ r i ~ n ~aymond T ~ I O ~ , 1. Gamble

NAYS-193 A& Fargo Linton Satha *ddph F a m w Lloyd saurmpn

Allen Fee W k Saylor Fichter LYQd Sch&

-ng Pl&e Maitland %huh Baker Fl i~k MsDdaiao S n i m t i

z; Freanan Ma&& se,"",eI Geis Marsim SaPfioi

Bebko-Jones George &lad Smith, B. &lar& Gnlach ~ n - k Smith. S. H. Bdfaoti Giglidti MECall Snyder, D. W. Bimelin Gladeck McCeehan S&k Bishop Godshall McNally Slain Blaum Gordnm Melio Sleplmso Boyes Omitvl Meny steighner f 3 r m G ~ P P ~ MicNwic Steil

F2 Hdurka Micopie Staa Hanna Mihalieh Stetler

~ ~ ~ k w i ~ Harley Miller Stish B U X ~ O ~ H-Y Mundy ~(rittmsuer Calla@mne Hskler Murphy Shldn Cappsbianca Henn=w Nailor Suw Cam Hemm Nickol Tangmi Gmne Henhey N ~ c e ~syior, E. Z. Cawley Hess O'Dmell Tiwnm &sac Hughes Oliver Tigue Chadwick Hutchinnon Pesci Tomlinson Clark Ilkin Panrsa Trello clyrru Jadlowi- Pctrolle Trish Cohes L. I. Jams Pntit Tme

~ B ~ I , ~

Jmlio Phillip Tulli Jasepb Piccds Ulians Kaiser Pistella Vance

C O ~ ~ I I Kagunic Pi& van Home c o m w Kdlm Plaflr Veoo

K ~ e y Reston Vitnli Coy King Reber C,,

WaUBh Kickland Reiaard William

~ a l e y Krebs Richrrdson Wogan DeLuca Kukwich Rieger W d a k

Ey LaGmtta Riner Wright. D. R Laub Rober(s Wrigbt, M. N.

Denwdy bughlio Roebuck Yaoddswits Donahlcci Lawless R o h Yew& DNCe Lederer R m e ~ zU% Egolf Lee Rubley

Leh Rudy Dew=% ~ ~ i ~ i , i l d ~escovitz Ryan

Santoni Spa&

Fajt J--hkY

NOT VOTING-0

EXCUSED-1

olasz

The question was determined in the negative, and the amendments were not agreed to.

On the question recumng, Will the House agree to the bill on third consideration as

amended?



1985 (P.L.164.No.45). knownas the Emernencv Medical Services

"Urgent iniury" shall be as defmed by the American College of Surseons' triage guidelines regarding use of trauma centers for the region where the services are provided.

"Usual and customary charge" means the charne most often made by providers of similar training. experience andlicensure for a specific treatment, accommodation. product or service in the geographic area where the treatment. accommodation, product or service is provided.

"Utilization review ornanizations" shall be those organizations consisting of an impartial vhvsician, surgeon or other health care provider or a panel of such professionals and roviders as authorized bv the Secretarv af Labor and Industry

h d published as a list in the form of a notice in the Pemsvlvania Bulletin, for the purpose of reviewing the reasonableness and necessity of treatment by a health care provider pursuant to section 306(f.1)16).


Section 204. No agreement, composition, or release of damages made before the date of any injury shall be valid or shall bar a claim for damages resulting therefrom; and any such agreement is declared to be against the public policy of this Commonwealth. The receipt of benefits from any association, - society, or fund shall not bar the recovery of damages by action at law, nor the recovery of compensation under article three hereof; and any release executed in consideration of such benefits shall be void: Provided, however, That if the employe recelves unemployment compensation benefits, such amount or amounts so received shall be credited as against the amount of the award made under the provisions of [section 108.1 sections 108 and 306. except for benefits pavable under section 306(c).

Section 5. Section 3Ol(a) and (c)(l) of the act, amended October 17, 1972 (P.L.930, No.223) and December 5, 1974 (P.L.782, No.263), are amended to read

Section 301. (a) Every employer shall be liable for compensation for personal injury to, or for the death of each employe, by an injury in the course of his employment, and such compensation shall be paid in all cases by the employer, without regard to negligence, according to the schedule contained in sections three hundred and six and three hundred and seven of this - article: Provided, That no compensation shall be paid when the injury or death is intentionally self inflicted, or is caused by the employe's violation of law, including. but not limited to. the illeeal use of druas, but the burden of proof of such fact shall be upon the employer, and no compensation shall be paid if, during hostile attacks on the United States, injury or death of employes results solely from military activities of the armed forces of the United States or from military activities or enemy sabotage of a foreign power. In cases where the iniurv or death is caused by intoxication. no compensation shall be paid if the miurv or death would not have occurred but for the em~love's intoxication, but the burden of proof of such fact shall be upon the emplover. . .

(c) (1) The terms "injury" and "personal injury," as used in this act, shall be construed to mean an injury to an employe, regardless of his previous physical condition, arlslng in the course of his employment and related thereto, and such disease or infection as naturally results from the injury or is aggravated, reactivated or accelerated by the injury; and wherever death is mentioned as a cause for compensation under this act, it shall mean only death resulting from such injury and its resultant effects, and occurrrng within three hundred weeks after the injury. The term "injury arising in the course of his employment," as used in this article, shall not include an injury caused by an act of a third person intended to injure the employe because of reasons personal to hrm, and not directed agalnst him asan employe or because of hls employment; nor shall if include mturies sustained while the emplove is operating a motor vehicle provided by the em~loyer if the employe is not otherwise in the course of employment at the time of iniurv; but shall ~nclude all other Injuries sustained while the employe is actually engaged in the

furtherance of the business or affairs of the employer, whether upon the employer's premises or elsewhere, and shall include all injuries caused by the condition of the premises or by the operation of the employer's business or affairs thereon, sustained by the employe, who, though not so engaged, is injured upon the premises occupied by or under the control of the employer, or upon which the employer's business or affairs are being carried on, the employe's presence thereon being required by the nature of his employment.

Section 6. Section 302 of the act, amended December 5, 1974 (P.L.782, No.263). is amended to read:

Section 302. (a) A contractor who subcontracts all or any part of a contract and his insurer shall be liable for the payment of compensation to the employes of the subcontractor unless the subcontractor primarily liable for the payment of such compensation has secured its payment as provided for in this act. Any contractor or his insurer who shall become liable hereunder for such compensation may recover the amount thereof paid and any necessary expenses from the subcontractor primarily llable therefor.

For purposes of this subsection, a person who contracts with another ( I ) to have work performed consisting of (i) the removal, excavation or drilling of soil, rock or minerals, or (ii) the cutting or removal of timber from lands, or (2) to have work performed of a kind which is a regular or recurrent part of the busmess, occupation, profession or trade of such person shall be deemed a contractor, and such other person a subcontractor. This subsection shall not apply, however, to an owner or lessee of land principally used for agriculture who is not a covered employer under t h ~ s act and who contracts for the removal of timber from such land.

(b) Any employer who permits the entry upon premises occupied by him or under his control of a laborer or an assistant hired by an employe or contractor, for the performance upon such premises of a part of such employer's regular business entrusted to that employe or contractor, shall be liable for the payment of compensation to such laborer or assistant unless such hiring employe or contractor, if primarily liable for the payment of such compensation, has secured the payment thereof as provided for in this act. Any employer or his insurer who shall become liable hereunder for such compensation may recover the amount thereof paid and any necessary expenses from another person if the latter is primarily liable therefor.

For purposes of this subsection (h), the term "contractor" shall have the meaning ascribed in section 105 of this act.

(c) Any employer employing persons in agricultural labor shall be required to provide workmen'scompensationcoverage for such employes according to the provisions of this act, if such employer is otherwise covered by the provisions of this act or if during the calendar year such employer pays wages to one employe for agricultural labor totaling one hundred fifty dollars ($150) or more or furnishes employment to one employe in agricultural labor on hventy or more days in any of which events the employer shall be required to provide coverage for all - employes.

(d) A contractor shall not subcontract all or any part of a contract unless the subcontractor has presented proof of insurance under this act.

(e) (1) Prior to issuing a buildins permit to a contractor. a municipality shall require the contractor to present proof of workers'compensation insurance for the duration of the work or an affidavit that the contractor is the sole proprietor, principal shareholder of a corporation or a partner in a partnership which does not employ other individuals to perform the work pursuant to the building permit.

(2) Everv building permit issued bv a municipality to a contractor shall clearly set forth the name and workers' compensation policv and the contractor's Federal or State Employer Identification Number. This information shall be in addition to any information required hv municipal ordinance. If the building permit is issued to a sole proprietor, principal shareholder of a corporation or a partnership which does not ernplov other individuals to perform the work pursuant to the


buildiw nermit, and is not otherwise oblinated to maintain workers' comvensation insurance under this act, the permit shall clearlv set forth the contractor's Federal or State Employer Identification Number and state that the sole proprietor. principal shareholder or partner is not required to carry workers' comvensation insurancz and that the sole nrovrtetor. orincival shareholder or partner is not permitted to employ any individual to nerform work nursuant to the building permit.

(3) Even' municivalih, issuing a buildinn permit shall be named as a workers'com~ensation ~ o l i c v certificate holder of a contractor-issued building permit. This certificate shall be filed with the municipalitv's c o ~ v of the building permit.

(4) A munici~alih, shall issue a stop-work order to a contractor who is verforminn work pursuant to a building permit, in the event his workers' comveusation insurance or self-insured status is cancelled. If the municioalih, determines that a sole proprietor, partner or shareholder who is verforminn work pursuant to a buildinn permit does not maintain required workers' com~ensation insurance, the munici~alitv mav issue a stop-work order. This order shall remain in effect until proper workers' compensation coverage is obtained for all work performed pursuant to the buildinn permit.

(0 Where a contractor is performins work for a public body or political subdivision, all contractors and subcontractors shall provide proof of workers' compensation insurance to the public bodv or political subdivision effective for the duration of the work. -

Should such volicv of workers'com~ensation insurance be cancelled or expire during the duration of the work or should the workers'com~eusation self-insurance status change during the said period. the contractor shall immediately notify, in writing. the municipality. public body or ~olitical subdivision of such cancellation, expiration or change in status.

Jh) Nothine in this act shall be the basis of any liabilitv on part of the municivalih,.

(i) For purposes of clauses (d). fe) and (0 of this section, "proof of insurance" shall include a certificate of insurance or self-insurance, demonstrating current coverage and compliance with the requirements of this act, the Occu~ational Disease Act and the Loneshore and Harbor Workers' Compensation Act (44 Stat. 1424, 33 U.S.C. 6 901 et sea.). its amendments and su~plements. where a~plicable.

a) For pwvoses of clauses (d). (el and 10. "proof of insurance" shall not be required when the emplover has been exempted pursuant to section 304.2 of this act.

Section 7. Section 305 of the act, amended December 5, 1974 (P.L.782, No.263) and repealed in part April 28, 1978 (P.L.202, No.53). is amended to read:

Section 305. Every employer liable under this act to pay compensation shall insure the payment of compensation in the State Workmen's Insurance Fund, or in any insurance company, or mutual association or company, authorized to insure such liability in this Commonwealth, unless such employer shall be exempted by the department from such insurance. Such insurer shall assume the employer's liability hereunder and shall be entitled to all of the employer's immunities and protection hereunder except, that whenever any employer shall have purchased insurance to provide benefits under this act to persons engaged in domestic service, neither the employer nor the insurer may invoke the provisions of section 321 as a defense. An employer desiring to be exempt from insuring the whole or any part of his liability for compensation shall make application to the department, showing his financial ability to pay such compensation, whereupon the department, if satisfied of the applicantb financial ability, shall, upon the payment of a fee of [one hundred dollars ($1 00.00)l five hundreddollars ($5001, issue to the applicant a permit authorizing such exemption.

(2) In securing the payment of benefits, the department shall require an employer wishinp, to self-insure its liabilitv to establish sufficient securitv bv posting a bond or other secnritv. including letters ofcredit drawn on commercial banks with a Thomson Bank Watch rating of B or better or a CD ratine of BBBIA2 or better

bv Standard and Poor's. This varanravh shall not apply to municipalities.

The department shall establish a period of twelve (12) calendar months, to begin and end at such times as the department shall prescribe, which shall be known as the annual exemption period. Unless previously revoked, all permits issued under this section shall expire and terminate on the last day of the annual exemption period for which they were issued. Permits issued under this act shall be renewed upon the filing of an application, and the payment of a renewal fee of one hundred dollars ($100.00). The department may, from time to time, require further statements of the fmancial ability of such employer, and, if at any time such employer appear no longer able to pay compensation, shall revoke its permit granting exemptiou, in which case the employer shall immediately subscribe to the State Worlunen's lnsurance Fund, or insure his liability in any insurance company or mutual association or company, as aforesaid.

Any employer who fails to comply with the provisions of this section for every such failure, shall, upon [summary conviction before any official of competent jurisdiction, be sentenced to pay a fine of not less than five hundred dollars ($500) nor more than two thousand dollars ($2,000), and costs of prosecution, or imprisonment for a period of not more than one (I) year, or both.] conviction in the court of common pleas, be guiltv of a misdemeanor of the third degree. If the failure to comvlv with this section is found by the court to be intentional, the employer shall be xuiltv of a felony of the third degree. Every day's violation shall constitute a separate offense.Aigd%e of the court of common oleas may, in addition to imposing fmes and imprisonment, include restitution in his order: Provided, That there is an iniured emvlove who has obtained an award of comvensation. The amount of restitution shall be limited to that specified in the award of compensation. It shall be the duty of the department to enforce the provisions of this section; and it shall investigate all violations that are brought to its notice and shall institute prosecutions for violations thereof. All fmes recovered under the provisions of this section shall be paid to the department, and by it paid into the State Treasury.

(cJ In any proceeding against an employer under this section, a certificate of non-insurance issued by the official Workmen's Compensation Rating and Inspection Bureau and a certificate of the department showing that the defendant has not been exempted from obtaining insurance under this section, shall be prima facie evidence of the facts therein stated.

@ When any employer fails to secure the payment of compensation under this act as provided in sections 305 and 305.2, the injured employe or his dependents may proceed either under this act or in a suit for damages at law as provided by article 11.

(e) Even emplover shall post a notice at its primary olace of business and at its sites of emvlovment in a prominent and easily accessible place. includinn. without limitation, areas used for the treatment of iniured emploves or for the administration of first aid, containin~

L1) Either the name of the emplover's carrier and the address and telephone number of such carrier or insurer or. if the emplover is self-insured, the name. address and telephone number of the person to whom claims or requests for information are to be addressed.

12) The following statement: "Remember, it is important to tell vour em~lover about vour iniurv." The notice shall be posted in prominent and easily accessible places at the site of employment, includina such places as are used for treatment and first aid of iuiured emvloves. Such a listin shall contain the miormation as specified in this section, typed OF erinted on eieht and one-half inch by eleven inch or eieht and one-half inch by thirteen inch paver in standard size type or

Sect~on 8. Section 306(a) and ( f ) of the act, amended December 5, 1974 (P.L.782, No.263) and July 1, 1978 (P.L.692, Na.119). are amended and the sectlon 1s amended by adding clauses to read:


Section 306. The following schedule of compensation is hereby established: - la) For total disabilitv. sixtv-six and two-thirds per cenNm

\ ~ ~ , ~ ~ ~

of the wages of the injurei'empioye as defmed in section three hundred and nine beginning after the seventh day of total disabilitv. and pavable Tor the duration of total disability, but the comaenskion ;hill not be more than the maximum compensation r ~ -

payable [nor less than fifry per centum of the ~ t a t e w ~ d e average weekly wage l fa t the tune ofm~ury. the employe recelves wages eaual to or less than tifly per centum o i the Statew~de avenge wkekly wage, then he shill receive ninety per centum of his average weekly wage as compensation, but in no event less than thirty-three and one-third per centum of the maximum weekly compensation payable] as defined in section 105.2. Nothing in this clause shall require payment of compensation after disability shall cease. If the benefit so calculated is less than fifhi per centum of the Statewide average weeklv wage. then the benefit payable shall be the lower of fiftv per centum of the Statewide average weeklv wage or einhtv-five per centum of the worker's average weekly . .

[ ( I ) ( I ) The employer shall provide payment tor reasonable suralcal and medical SeNlces, s en Ices rendered by duly llcenned practitioners of the healing arts, medicines, and supplies, as and when needed: Provided, That if a list of at least five designated physicians or other duly licensed practitioners of the healing arts or a combination thereof is provided by the employer, the employe shall be required to visit one of the physicians or other practitioners so designated and shall continue to visit the same or another physician or practitioner for a period of fourteen days from the date of the fust visit. Subsequent treatment may be provided by any physician or any other duly licensed practitioner of the healin. arts or a combination thereof, of the employes owq cho~ce, and S c h treatment shall be p a ~ d ior hy the employer Any employe who next folluw~ng the termtnauon o i the fourteen-day ~e r lod 1s prov~ded treatment lrom a phynlc~an or uther duly iicensed p;actitioner of the healing arts who is not one of the physicians or practitioners designated by the employer, shall notify the employer within five days of the frst visit to said physician or practitioner. However, if the employe fails to so notify the employer, the employe shall suffer no loss of rights or benefits to which he is otherwise entitled under the act. - (2) If and only if the employer has designated at least five physicians or other duly licensed practitioners of the healing arts or a combination thereof as permitted by the preceding paragraph, the following reporting provisions shall apply. Nothing in the following paragraphs shall eliminate rights of tbe employer to obtain all records and data as permitted under any other sections of this act.

(i) The physician or other duly licensed practitioner of the healing arts shall be required to file periodic reports with the employer on a form prescribed by the department which shall include, where pertinent, history, diagnosis, treatment, prognosis and physical findings. The report shall be filed within twenty-one days of commencmg treatment and at least once a month thereafter, as long as treatment continues. The employer shall not be liable to pay for such treatment until a report has been filed.

(ii) The employer shall have the right to petition the department for review of the necessity or frequency of treatment or reasonableness of fees for services provided by a physiciac or other dulv licensed oractitioner of the healing arts. Such a petltlou shall 111 n;, event aci as a supcrnedsas. and d;rlny. the pcnd&c) dl' any such prutlon the employer \hall pay all mcdwal bills 11 the phbr~clan or <,thrr pracUtt0ur.r oithe heallre arts lllzs a reporl or ;eports as required by subparagraph (i) of paragraph (2) of this subsection.

( 3 ) After an employe has elected to be treated by a physician or other duly licensed practitioner of the healing arts who is not one of the physicians or practltlouers des~gnated by the employer, he may thereafter elect to be treated by another physician or other duly licensed practltloner of the healing arts upon notlce to h ~ s employer: Provided, however, That no such notice shall be required in emergencies, or in cases ofreferrals by

one physlclan or practltloner to another physlclan or pracutloncr or lf h e new ohvslclan or practrttoner makes a tlmely report to theemployer Gi&m twenty-bne days after commencing treitmeilt

(4) In addition to the above service, the employer shall provide payment for medicines and supplies, hospital treatment, services and supplies and orthopedic appliances, and prostheses. The cost for such hospital treatment, service and supplies shallnot in any case exceed the prevailing charge in the hospital for like services to other individuals. If the employe shall refuse reasonable services of duly licensed practitioners of the healing arts, surgical, medical and hospital services, treatment, medicines and supplies, he shall forfeit all rights to compensation for any injury or any increase in his incapacity shown to have resulted from such refusal. Whenever an employe shall have suffered the loss of a limb, part of a limb, or an eye, the employer shall also provide payment for an artificial limb or eye or other prostheses of a type and kind recommended by the doctor attending such employe in connection with such injury and any replacements for an artificial limb or eve which the employe may requue at any - ~~

tune thvreaiter, tugeth;r wuh such cont iu id medlcal ;are as may be prescrbbed by the doctor attendmg such employe in connection wlth such mlurv as well as such tralnmg as may be requued m the proper use i f sLch prostheses. The pro7isions of this section shall apply in injuries whether or not loss of earning power occurs. If hospital confinement is required, the employe shall be entitled to semi-private accommodations but if no such facilities are available, regardless of the patient's condition, the employer, not the patient, shall be liable for the additional costs for the facilities in . nrivate rnnm -" r...-.-

(5) The payment by an insurer for any medical, surgical or hosoital services or supplies aRer any stahlte of limitations nroiided for in this act chsll have expired shall not act to reopen r - ~ -~

or review the compensation righis for purposes of &ch limitations.]

(f.1) ( I ) (i) The emplover shall provide Davment in accordance with this section for reasonable suraical and medical services, services rendered by phvsicians or other health care providers, medicines and supplies as and when needed. Provided an employer establishes a list of at least five des iwted

hysicians, one or more of whom may be a coordinated care :rganization, or other health care provider. the emplove shall be required to visit one of the physicians or other health care provider or coordinated care organization so designated and shall continue to visit the same or another designated physician or health care provider for a period of thirtv days from the date of the first visit: Provided, however. That the employer shall not include on the list a physician or other health care provider who is emploved, owned or controlled bv the employer or the employer's insurer unless employment, ownership or control is disclosed on the list: And provided further. That the iniured employe shall not be required to visit a phvsician or health care provider employed, owned or controlled bv the emplover or the emulover's insurer: And provided further. That the employer shall not include on the list a coordinated care organization that is owned or controlled. directly or indirectly, in whole or in part, bv the emplover or the emplover's insurer unless ownership or control of the coordinated care organization is disclosed on said list. and the iniured emplove shall not be required to visit the same. Should the employe not comply with the foreeoina. the emplover will be relieved from liabiliw for the pavment for the services rendered during such applicable period. I t shall be the dutv of the emplover - to provide a clearlv written notification of the employe's rights and duties under this section to the emplove. The emplover shall further ensure that the emplove has been informed and that he understands these rights and duties. This duhi shall be evidenced only bv the em~love's written acknowledgment of havina been informed and havina understood his rights and duties. Any failure of the employer to provide and evidence such notification shall relieve the emplove from anv notification dutv owed, notwithstanding any provision of this act to the contrary, and the employer shall remain liable for all rendered medical treatment. Subsequent treatment mav be ~rovided bv any phvsician or health carc prov~der of the employe's own choice. and this treatment


11) Mainlams a referral capacllv to lreat other i iurlcs and illnes:es not covered bv p r u n w services but which are covered

delivery of medical care services. (vii) Establishes a writtep grievance procedure for v rom~t

and effective resolution of vatlent anevances. 4) The secretan shall refuse to certifv or mav revoke or

susveid certification of any coordinated care orpmizallon if the secreta finds that:

( i y the plan for providiia medical or health care services fails to meet the requirements of this section: or

ii) service under the plan is not beinu provided in accoAance with terms of the plan as certified.

5) A person in utilization review: qualiw assur&ce or peer review activities pursuant to thls sectlon sball not be examined as to any communication made in the course of such activities or the fmdings thereof. nor shall any person be subiect to an action for civil damages for actions taken or statements made in uood faith.

6) Health care providers desimated as rural bv HCFA 01

looat:d in a counw witb a rural Health Professional Shortaae Area. who are attemptinu to fonn or overate a coordinated care organization. may be excluded from meetinu some or all of the minimum requirements set forth in varanraphs (2) and (3) of this clause. as sball be determined in rules or reaulations promuluated by the department.

7) The department shall have the vower and authoriw to romblpate. adopt. publish and use regulations for the

Pimplementation of this section. t..


Section 307. In case of death, compensation shall ,be comvuted on the fnllowine basis, and distributed to the followig .... persbns Pn,vldeJ, 1 hat ;no case shall the wages ofthc deceased be taken 10 he less than f~ f ty per centum of lbe Sta~ew~de average weekly wage for purposes~of this section:

1. If there be no widow nor widower entitled to compensation, compensation shall be paid to the guardlan of the child or children, or, if there be no guardian, to such other persons as may be designated bv the board as hereinafter vrov~ded as -

follows: (a) If there be one child, tbirty-two per centum of wages of

deceased, but nor inexcessof the Statewide average weekly wage. (b) If there be two children, forty-two per centum of wages

of deceased, but not in excess of the Statewide average weekly wage

(c) If there be three children, fifty-two per centum of wages of deceased, but not in excess of the Statewide average weekly ~~ - wage.

(d) If there be four children, sixty-Wo per centum of wages of deceased, but not in excess of the Statewide average weekly wage.

(e) I f there be five children, sixty-four per cennun of wages of deceased, but not in excess of the Statewide average weekly wage.

(0 If tbere be six or more children, sixty-six and two-thuds per centum of wages of deceased, but not in excess of the Statew~de average weekly wage.

2. To the widow or widower, if tbere be no children, fifty- one per centum of wages, but not in excess of the Statewide average weekly wage.

-~




4 112. To the widow or widower, if there be three or more children, sixty-six and two thirds per centum of wages, but not in excess of the Statewide average weekly wage.

5. If there be neither widow, widower, nor children entitled to compensation, then to the father or mother, if dependent to any extent upon the employe at the time of the injury, thuty-two per centum of wages but not in excess of the Statewide average weekly wage: Provided, however. That in the case of a minor child who has been contributing to his parents, the dependency of said parents shall be presumed: And provided further, That if the father or mother was totally dependent upon the deceased employe at the time of the injury, the compensation payable to such father or mother shall be fifty-two per centum of wages, but not in excess of the Statewide average weekly wage.

6. If there be neither widow, widower, children, nor dependent parent, entitled to compensation, then to the brothers and sisters, if actually dependent upon the decedent for support at the time of his death, twenty-two per centum of wages for one brother or sister, and five per cennun additional for each additional brother or sister, with a maximum of thirty-two per centum of wages of deceased, but not in excess of the Statewide average wage, such compensation to be paid to their guardian, or if there be no guardian, to such other person as may be designated by the board, as hereinafter provided.

7. Whether or not there be dependents as aforesaid, the reasonable expense of burial, not exceeding [one thousand five hundred dollars] three thousand dollars ($3.000), which shall be paid by the employer or insurer directly to the undertaker (without deduction of any amounts theretofore paid for compensation or for medical expenses).

Compensation shall be payable under this section to or on account of any child, brother, or sister, only if and while such child, brother, or sister, is under the age of eighteen unless such child, brother or sister is dependent because of disability when compensation shall continue or be paid during such disability of a child, brother or sister over eighteen years of age or unless such child is enrolled as a full-time student in any accredited educational institution when compensation shall continue until such student becomes twenty-three. No compensation shall be payable under this section to a widow, unless she was living with her deceased husband at the time of his death, or was then actually dependent upon him and receiving from him a substantial portion of her support. No compensation shall be payable under this section to a widower, unless he he incapable of self-support at the time of his wife's death and be at such time dependent upon her for support. If members of decedent's household at the time of his death, the terms "child" and "children" shall include step- children, adopted children and children to whom he stood in loco parentis, and children of the deceased and shall include posthumous children. Should any dependent of a deceased employe die or remarry, or should the widower become capable of self-support, the right of such dependent or widower to compensation under this section shall cease except that i f a widow remarries,she shall receive one hundred four weeks compensation at a rate computed in accordance with clause 2. of rection 307 in a lump sum after which compensation shall cease: Provided, however, That if, upon investigation and hearing, it shall be ascertained that the widow or widower is living with a man or woman, as the case may be, in meretricious relationship and not married, or the widow living a life of prostitution, the board may order the termination of compensation payable to such widow or widower. If the compensation payable under this section to any person shall, for any cause, cease, the compensation to the remaining persons entitled thereunder sball thereafter be the same as would have been payable to them had they been the only persons entitled to compensation at the time of the death of the deceased.

The board may, if the best interest of a child or children shall so require, at any time order and direct the compensation payable to a child or children, or to a widow or widower on account of any child or children, to be paid to the guardian of such child or children, or, if there be no guardian, to such other person as the board as hereinafter provided may direct. If there be

C no guardian or committee of any minor, dependent, or insane employe, or dependent, on whose account compensation is payable, the amount payable on account of suchminor, dependent, or insane employe, or dependent may be paid to any surviving parent, or such other person as the board may order and direct, and the board may require any person, other than a guardian or committee, to whom it has directed compensation for a minor, dependent, or insane employe, or dependent to he paid, to render, as and when it sball so order, accounts of the receipts and disbursements of such person, and to file with it a satisfactory bond in a sum sufficient to secure the proper application of the moneys received by such person.

Section 10. The act is amended by adding a section to read Section 308.1. (a) The elinibility of wofessional athletes

for compensation under this act shall be limited as provided in this section.

[b) The term ''professional athlete." as used in this section, shall mean a natural person emploved as a professional athlete by a franchise of the National Football League. the National Basketball Association, the National Hockey Leaaue. the National Leaeue of Professional Baseball Clubs or the American Leanue of Professional Baseball Clubs, under a contract for hire or a collective bargainimp agreement, whose wanes as defmed in section 309 are more than six times the Statewide average weekly

(c) In the case of a professional athlete, any com~ensatiou payable under this act with respect to partial disability shall be reduced by the after-tax amount of any:

(1) Waues payable bv the emplover during the period of disability under a contract for hire or collective bargaining anreement. 'r'

J2) Payments under a self-insurance. wane continuation, disability insurance or similar plan funded by the em~lover.

(3) lniurv protection or other iniurv benefits payable by the employer under a contract for hue or collective bargaining ameement.

{d) In the case of a professional athlete, the term "wanes of the iniured employe" as used in section 306(b) for the pumose of computine compensation for partial disability shall mean two times the Statewide average weekly wane.

Section l I. Section 314 of the act, amended February 28, 1956 (1955 P.L.1120, No.356), is amended to read:

Section 314. At any time after an injury the employe, if so requested by his employer, must submit himself for examination, at some reasonable time and place, to a physician or physicians legally authorized to practice under the laws of such place, who shall be selected and paid by the employer. If the employe shall refuse upon the request of the employer, to submit to the examination by the physician or physicians selected by the employer, [the board] a referee assigned by the department may, upon petition of the employer, order the employe to submit to an examination at a time and place set by [it] the referee, and by the physician or physicians selected and paid by the employer, or by

a a physician or physicians designated by [it] the referee and paid by the employer. The [board] referee may at any time after such fust examination, upon petition of the employer, order the employe to submit himself to such further examinations as [it] referee sball deem reasonable and necessary, at such times and places and by such physicians as [it] the referee may designate; and in such case, the employer shall pay the fees and expenses of the examining physician or physicians, and the reasonable traveling expenses and loss of wages incurred by the employe in order to submit himself to such examination. The refusal or neglect, without reasonable cause or excuse, of the employe to submit to such examination ordered by the [board] referee, either before or after an agreement or award, shall deprive him of the

C right to compensation, under this article, during the continuance

1993 LEGISLATIVE J01 JRNAL - HOUSE 567

of such refusal or neglect, and the period of such neglect or refusal shall be deducted from the period during which

,compensation would otherwise be payable. The employe shall be entitled to have a physician or

physicians of his own selection, to be paid by him, participate in any examination requested by his employer or ordered by the [board] referee.

Section 12. Section 321 of the act, added March 29, 1972 (P.L.159, No.61), is amended to read:

Section 321. [Nothing contained in this act shall apply to or in any way affect any person who at the time of injury is engaged in domestic service: Provided, however, That in cases where the employer of any such person shall have, prior to such injury, by application to the Workmen's Compensation Board, approved by

)the board, elected to come within the provisions of the act, such exemption shall not apply.] Nothing contained in this act shall app~v to or in any wav affect:

(1) Anv person who at the time of iniury is engaged in domestic service: Provided, however, That in cases where the emplover of anv such person shall have, prior to such iniury, bv apvlication to the department, and approved by the deoartment, elected to come within the provisions of the act. such exemption shall not a v ~ l v .

(2) Any person who is a licensed real estate sales~erson or an associate real estate broker, affiliated with a licensed real I

p~ ~

estate broker. under a written agreement, remunerated on a commission only basis and who qualifies as an independent contractor for State tax purposes under the act of March 4. 1971 (P.L.6. No.2). known as the "Tax Reform Code of 1971."

Section 13. The act is amended by adding sections to read:

-~ -

rctaincdto p ~ ~ t o ~ ~ c b ~ r o n i l T s e ~ \ tcrs on> construction D~~,LCII, or any employe o i a constructLon deslrn nrotessional who& ass~stlng or reprrsentlnx the construc1r.m design proicssional m the performance of professional services on the site of the ] -- ~~ ~ - - -

constructto=r,,ject, shall 1101 he Ilablc under thls act lor any ~nlury or death of a w0rkL.r n d an cmplabr of huch des t~n profc~s~onal the- construction prolect for which workers' I compensation is payable under the provisions of this act.

Lb) The immunity from liabilitv provided hv the above subsection shall not ~ D D ~ V if:

(1) the injury or death is caused hv the neallaent - - ~ ~~

preparalion of design plans or specifications by the construction desim professional;

(2) the construction design professional assumes responsibility for safety practices at the construction proiect by p~ p~ ~-

written ctrntri>t. .G ~ 3 , ihe c,rnstructton Jcsiv~, p d c s ~ ~ a n a l aaually <xerclser

cnl ro l t w e r thc purltan ofthe constructmn srte whcrc the worker is iniured or killed. 1

& Notw~thstandmg an,' prtw!sio.n-.I< thc . o n t r d u \ e n shall avpl) lo ilain15 lor c , ? m ~ c n s a ~ b a s c d on lnjurle., or death whlch occurrd after the cl'~eir.aivc&c~ of this sectton

S~~ct ton 14. Sc;tlt~ns 4111 pardgraph an\lJO? af the act. amended February 8, 1972 (P.L.25, No.12). are amended to read:

Section 401. The term "referee." when used in this larticlel I I g, shall mean IWorkme~tb ('ompcnsitit>n K r . l e r u e ( ~ & j r M

(*cnsalion Ju& ot tlw L)cpart~ncnt .,l l.ab,!r and lodu~tr). I appornted by and subject to the generdl supervtslon of the Secretary of Labor and Industry for the purpose of conducting departmental hearings under t h ~ s act The secretary may establish d~fferent classes of [relerees ] these {"dyes Anv reference m any

statute to a workmen's comDensatlon rcteree shall be deemed to bc a reference to a workers' compensation ~udue.

. . a

Section 402. All proceedings before any referee- those for which an informal conference has been avolied for as provided bv section 402.1 of this act. shall be instituted by claim petition or other petition as the case may be or on the denartment's own motion. and all a~oea l s to the board, shall be Inktuted by appeal addressed to thh board All claun petltrons, requests for ~nformal conferences and other petit~ons and appeals shdll be in writing and i n the lorn prescribed by the department

Section 15.- he act is amendid bv addinia section to read:

section: - L) the referee mav accept the statements of both parties.

tonetier with anv medical reports, witnesses' statements or other documents which the parties would like to present;

(ii) all communications. verbal or written, from the parties to the referee and any information and evidence presented to the referee durine. the proceedings shall be confidential: and

(iii) each partv mav be represented, but the em~lover may onlv be revresented by an attornev at the informal conference if the emplove is also represented bv an anomev at the informal

Unless the parties iointlv agree to a time extension. all - --

proceedings w~thtn an ~nformal conlerencc shall be com~leted withm th~rty.five davs of the fillne of thc IrqUCht for an miornal cunierencc Jutnt hgreement 1s a tune e x t e n ~ ~ o n shall star the proceedmgs for the tune anreed upon.

u) I n r h e ~ e n t that the parties cannot resolve theu dls~ute, the matter rcmamlnn in dispuc shall be asstuned to a rcferee for a hearme, pursuant to section 414 uf thls act

LL., [he results of the 1n1Gmal conference shall nor be adm~hslblc a1 any subsequent proceedma on the ulaun.

( 0 NJ referee who parliclpalcs in an loformal conference conducted pursuant to this sectton shall he compelled ur permined tu ~csttf, ahout any matter discussed or revealed durmc such -- - - pro~uedtngs m anv .>(her proceedine pursuant to thls act, except niattcrs lnvolvinr fraud, or shall be pcrm~tted to presldu at any subsequent vroceedings on the claim.

Section 16. Section 406.1 of the act is amended by adding a clause to read:

Section 406.1. * * ~~ ~~

id ( I J In any instance wbere an emplover is uncertam whsthcr a claim is compensahlc under this acl or is uncerram of the extent ~ j f 11s I~abil~ts under thrs act, the employer may lnrtlate con~pcrtrdt~~>n paiments w~thout pretud~ce a n d w~thout admlttmq Itablllt\. pursuant to a notice O I temporarv compensation payable <s-Gibed by the department.

compensation pavable, send a notice to the claimant informine the - - ~

' G ~ a l h i h a T T c payment c r i irniporary ~ompensatlon and the {l'+tn~dnt; ~ C C ~ ~ I M I C C ~f that CompensaiJon dttes not mean the


[tv) Pavment oftempurarv compensatlon shall be considered cornpensatton for purposes of tolllna the statute of llnt~tations under section 3 15 of this act.

( 6 ) If the employer does not file a notlce under oarauraph ( 5 ) of clause id) of lhts section wrthm the six-week per~ud durmg whtch temporary compensatton IS patd or payable, the employer shall be deemed to have admltted ltabtlitv and the notice of temporaw com~ensation pavable shall be converted to a notice of compensation payable.

Section 17. Section 420 of the act. amended Februarv 8. I , . 1972 (P.L.25, No.l2), is amended to read:

Section 420. @J The board, the department or a referee, if it or he deem it necessary, may, of its or his own motion, either before. during. or after anv hearing. make or cause to be made an -. -. ~~~~-

investigation of the facts set forth in the petition or answer or facts pertinent in any injury under this act. The board, department I or reieree may afpoint one or more impartial physicians or surgeons to examine the injuries of the plaintiff and report thereon, or may employ the services of such other experts as sball appear necessary to ascertain the facts. The referee when necessary or appnwnate or upon request o i a Party m order to rule on requests for review filed under clause i t I I uf sectlou 306 o i l h ~ s act, or under other nruvtstons of thts act, may ask ior an opmion from peer review about the necessitv or frequency o i treatment under clause ( f l ) of sectlon 306 of thrs act 'The ppy_r r m report or the Deer report of any physictan, surgeon. or expert appomtcd by the department or by a referee, tncludann the report of a peer revlew orpanizatton, shall be filed with the board or referee.% the c G m a v E d shall be a Dart of the record and open to inspcctlon a; such The referee ;hall consider the report as evidence but shall not be bound by such report

W 'She board or refcree. as the case may be, shall iix the compensatton ofsuoh physicians, surgeons, dndexperta, a-r peer reblew organrzatrons which. \\hen so fired, shall be paiJ out of the sum appropr~ateJ 1'1 the Drpartnlrnl of I abor and Industry for such purpose.

Section 18. Section 422 of the act, amended February 8, 1972 (P.L.25, N0.12) and March 29. 1972 (P.L.159. No.611. is amended to read:

Section 422. @ Neither the board nor any of its members nor any referee shall be bound by the common law or statutory rules of evidence in conducting any hearing or investigation, but all findings of fact shall be based upon sufficient competent evidence to justify same. All parties to an adiudicatow proceeding are entitled to a reasoned decision, containing fmdings of fact and conclusions of law based upon the whole record which clearly and conciselv state and explain the rationale for the decision so that all can determine whv and how a particular result was reached. The adiudicator shall specifv the evidence upon which the adiudicator relies in conformiw with this section. The adiudication shall provide the basis for meaningful appellate review.

If any party or witness resides outside of the Commonwealth, or through illness or other cause is unable to testify before the board or a referee, his or her testimony or deposition may be taken, withii or without this Commonwealth, in such manner and in such form as the department may, by special order or general rule, prescribe. The records kept by a hospital of the medical or surgical treatment given to an employe in such hospital shall be admissible as evidence of the medical and surgical matters stated therein.

Where any claim for compensation @ at issue before a referee [involves hventy-five weeks or less of dtsability], either the employe or the emplover mav submit a certificate bv anv . . qualifiid bhysictan as 'to .the hi;tory, exammation, trcahnent. diagnosts and cause of the condrt~on, and sworn reports by other wrtnesses as 13 any other facts and such statements shall be admissible as evidence of medical and surgical or other matters therein stated and findings of fact mav be based uoon such cert~fi~atea or such reporti[ ] Provtded, ihat. any pa& shall be dllowed the opporrunitv to lakc a de~osrtion for pumoses of cross- examlnatlon. upon the trndrrmn to the ~ a r w oifermg said report reasonable expense\, mcludmy the fee for such depositton And further ~rovldcd. I hat the usc o f a deposition shall not preclude tntroduction of a medtcal report Should a dispute artse ac to the reasonableness of the amounts demanded or tendered. the referee heamp the pet~tron chall lssue an order relatmv to the assessment ,.r

@) Where an employer shall have fvmished surgical and medical services or hospitalization in accordance with the provisions of [subsection (f) ofJ section 3 0 6 a , or where the emolove has himself procured them. the emolover or emolove shail. upon requcat, in iny pendmg proceedmg be lurnished'w~ih, or have made avarlable, a true and coinplete record of the medical and surgical services and hospital treatment, including X rays, laboratory tests, and all other medical and surgical data in the possession or under the control of the party requested to furnish or make available such data.

( e ) The department mav adopt rules and regulations govern<g the conduct of all hearlogs held pursuani to any provisions of this act, and hearmgr shall be conducted tn accordance therewrth, and in 3uch manner as best to ascertain the substantial rights of the parties.

Section 19. Sections 438 and 440 of the act, added February 8, 1972 (P.L.25, No.l2), are amended to read:

Section 438. @ An employer shall report all injuries 1 received by employes in the course of or resulting from their I em~lovment immediatelv to the emolover's insurer. If the a

emploGer is self-msured'such injuries'sh~ll be reported to the person respons~ble for management of the employer's , - ~

compensation program. An employer shall report such injuries to the

Department of Labor and Industry by filing directly with the department on the form it prescribes a report of injury within forty-eight hours for every injury resulting in death, and mailina within [three] seven days after the date of injury for all other injuries except those resulting tn disability continuing less than the day, shift, or turn in which the injury was received. A copy of this report to the department shall be mailed to the employer's insurer forthwith. t

(cJ Reports of injuries filed wtth the department under this section shall not be evidence against the employer or the employer's insurer in any proceeding either under this act or


otherwise Such reports may be made available by the department - to other State or Federal agencies for study or mformatronal 1 purposes.

Section 440. faJ In any contested case where the insurer has contested liability in whole or in part, including contested cases involving petitions to terminate, reinstate. increase. reduce or otherwise modifv compensation awards. agreements or other payment arrangements or to set aside fmal receivts, the employe or his dependent, as the case may be, in whose favor the matter at issue has been fmally determined shall be awarded, in addition to the award for compensation, a reasonable sum for costs incurred for attorney's fee, witnesses, necessary medical examination, and the value of unreimbursed lost time to attend the proceedings: Provided, That c a t for attorney fees may be excluded when a reasonable basis for the contest has been establishedl: And provided further, That ifl,

-. -. - . . . . - -. . . - r-,- ~ ~ 7r

dates to the amount of compensation due, costs for attorney's fee shall be based only on the difference between the final award of I compensation and the compensation paid or tendered by the insurer.

[Incontestedcases involvingpetitions to terminate,reinstate, increase, reduce or otherwise modify compensation awards, agreements or other payment arrangements or to set aside final receiats. where the contested issue. in whole or van. is resolved ~ ~ ~~r ~. . in favor of the claimant. the claimant shall be ent~tlcd to an award ol reasonable costs as herelnahovc act torth.]

Section 211 The act is amended by addlnp: a sectlon to read. Section 440 1 In the even! the msure; is Lound to hdte

acted m an unreasonable manner and m bad taith 10 relusmv to pay thr benctbts when due. the Insurer sbdll pav. in addltion to the benefits owed and the interest thereon. court costs and a reasonable attorney fee based upon actual time expended.

Section 20.1. Section 447 of the act, added May 20, 1976 (P.L.135, No.61) is amended to read:

Section 447. (a) There is hereby created an advisory council, to be known as the Pennsylvania [Workmen's] Workers' Compensation Advisory Council[, and to be composed of men and women with an equal number of employer, employe, and public representatives who may fairly be representative because of their vocation. emplovment. or affiliationsl. The council shall iconsistl I be comvr~sed ol.la maximum 01 seven] e& members Iin~luding the], with Lour members bernv emnh~ve renreseniative> and four 1 members being emvlover revresentatives. The Secretary of the Department of Labor and Industry[, who] shall be an ex officio member. The members of such council shall be appointed as follows: one emplove representative and one emplover representative by the [secretary within thirty days ofthe effective date of this amendatom act and shall serve a term of two years

a and until their succes~ors have been appointed and qualified] President pro tempore of the Senate, one em~loye revresentalive and one employer representative by the Speaker of the House of Representatives, one emplove representative and one emvlover re~resentative bv the Minority Leader of the Senate and one emplove representative and one emplover representative by the Minoriw Leader of the House of Reoresentatives. The members of the council shall select one of their number to be chalrmau. lSuch council shall consider and advise the de~artment uoon all I matters relalr.1 to the jJnlinistrata~,n o i The )'ennsyJvanla Workmcn's('umpensai~onAct and'l'he I'eonsyl\~a~~taOccupat~onal 1 1)isease Act. Such cuuncil may rccommcnJ to the sdcrctary updn 11s own ul!tiatave such change, in the pru, ,sons of ibex acts and the admm~struliun there01 as it dcun~s necsssar). and shall makc periodic reports to the secretary regarding the performance of its duties and functions.1 1

(b) [In the performance of its duties. the] (1) counctl may hold hearings. receive testimony, sol~cit and recetve I

comments [and information] from interested parties and the general public and shall have full access to information relating to the [purpose of these acts] administration of this act by the Department of Labor and Indushy. The council shall not have: access to confidential medical information pertaining to individual claimants. but may develoo statistical sNdies and surveys concern&g [the] a i e c t s of iincidence of [occupational] injuriks [and diseases generally.],claims management. Iltination. and adherence to the vrovisions of this act and the Occupational

renardinn those practices. (c) The members of the advisory council, once a~pointed,

shall serve until the expiration of the terms of office of their aprrointinp, authority. Members shall serve without compensation, but shall be entitled to be reimbursed for all necessary expenses . . incurred in the discharge of their duties. The secretary shall [appoint an executive secretary and such other personnel as he shall deem necessary to aid] provide facilities and clerical and professional support as needed bv the council in the performance of its [functions] duties. The compensation of such [employes] staff and the amounts allowed them and to members of the council - for traveling and other council expenses shall be deemed part of the expenses incurred in connection with the administration of [The Pennsylvania Workmen's Compensation and The Pennsylvania Occupational Disease Acts] w.

Section 20.2. The act is amended by adding sections to read

Scciian 448 ( a ) An msurer issulnn a workers' turnnensati,>n and emvloverz'li~bilin rnsurance pollcv shall offer.




insurance market. Section 710. (a) If the commissioner fmds after a hearing

that a rate is not in com~liance with section 704 or that a rate had been set in violation of section 713, the commissioner shall order that its use be discontinued for any policy issued or renewed after

determme whether a reasondble degree of competltloo exlsts withm the market, and shall grve a rulmn lo that effect All msurers operating wlthm such market shall have the burden 01 estabhshmg that a reasonable degree of comprt~r~oo exlsts wlthm that market The commissluoer shall conslder all relevant factors 1n determtomn the compelalveness of the market. l nc lud~n l~

(I) the number of usurers act~vely engaged m provldme. coverage;

{ii) market shares; (iii) changes in market shares; and [iv) ease of entrv. (2) If the commissioner determines that a reasonable degree

ofcompetlt~on does not exlst in lhe market, anv Insurer deslgoated by the commlssloncr shall have the burden of jusllfsme. its rate m such market.

(3) All determinations made bv the commissioner shall be on the bas~s of rmdtngs of fact and conclusions of law

(4) I f the cummlssluner d l s a p ~ r o v c ~ a rate, the drsapproval shall take effect not less than fifteen days after hls order and the last Drevlous rate m effect lor the msurer shall br. rc~mposed fur a period of one year unless the commlssioner approves a rate under clause (d) or le).

Id) Within one vear after the effective date of a disap~roval order. no rate adopted to replace one disapproved under such

placed in a special reserve established bv the insurer. When new

rates become leaally effective, the commissioner shall order the svecially reserved funds or any overcharne. in the interim rates to be distributed appropriatelv to the insureds or insurer as the case may be. except that refunds to ~olicyholders that are minimal mar not be required.

Section 711. (a) (1) If the commissioner finds after hearing that competition is not an effective regulator of the rates

C charged or that a substantial number of com~anies are competing irresoonsibly through the rates charged. or that there are -

wldesorcad vlolatlons of thls article, the commlssioner may adopt a ~ l e requumg that any subsequent changes m the rates ur su~plementarv rate lnformatlon be faled wlth the commlssloner at

( h j In the event that the commlssloner has entered an order pursuant to paragraph 1 1 ) of clause (a]. the commlsslooer may requlrc the f~lmw ot supportme, data as the Lommrssroner deems necessarv for the proper functionmg of the rate monllonog and regulatlne. process The supportma data shall mclude

( I thc expertcoce and judgment of the filer, and to the extent the filer wlshes or the commlsstoner requues. the expcrlence and ~udgment of other iosurers or rate servlce organizations,

(2) the filer's interpretation of any statistical data relied

(3) a description of the actuarial and statistical methods employed in senine the rate: and

(4) any otherrelevant maners required by the commissioner. (c) A rule adopted under this section shall expire not more

than one vear after issue. The commissioner mav renew it for an additional one-vear period after a hearing and appropriate fmdinns

(4) make any agreement with anv other insurer, rating organization, or other person where the effect of the agreement may be substantiallv to lessen competition in the business of insurance of any kind, subdivision, or class; or

(5) make anv agreement with any other insurer or rating organization to refuse to deal with any person in c o ~ e c t i o n with

C the sale of insurance.


section 719. (a) A person or organization may not wilfullv withhold information from or knowin iv nwe false Or mlsleadmg dformation which will affect the razs or ~remiums charneable under this article to:

(1) the commissioner: or J2) any ratmp, organization or any msurer.



commissioner. Dividends mav be returned to members in accordance with section 809.

c ) Nothing contained in this section shall preclude the asses:ment and payment of supplemental assessments as provided

for payment of dividends from the surplus remaming from any annual reporting period which has been completed for at least a p

twentv-five months or lonner and mav include such dividend avments with initial dividend paymcnts from the subsequent

annual reporting period. Section 810. (a) If the assets of a fund are at any time

insufficient to enable the fund to discharze its legal liabilities and other obligations and to maintain the actuariallv appropriate loss reserves required of it under paragraph (14) of clause (b) of section 802. the fund shall forthwith make up the deficiencv or levy an assessment upon the fund members for the amount needed to make UD the deficiencv.

i b ) n the event of a deficiencv in anv annual reportin% period, such deficiency shall be made up mn~mediately. either from surplus from a vear other than the current year. assessment of the fund members if ordered by the fund or such alternate method as the department may approve or direct.

(c) If the fund fills to assess 11s s~cmbcrs or to rttherwtse make up such dcfrcit within thirty days thc dcp:trtmcnt shall order it lo do so

- -

(d) if the fund fails to make the required assessment of its m e ~ b e r s within thirtv days after the department orders it to do so, - --

or if the def~ctencv is not fullv made up withm stxtv davs after the date on wb~ch such assessment is made or withm such lonner ~ e r i o d of tlme as ma) be specified bv the depawcnt. the fund shall be deemed to bc msolvent

el 'fhr department shall proceed aaatnst au ~nsolvent fund in thelsame manner as the department would proceed aaamst an insurer under Article IX.

(f) In addition, in the event of the liquidation or default of

m u l t ~ $ ~ e d b ~ h e rates as uttllzed by the State Workmen's - -~ p~

Insurancr~ I'und ior members mlnus anv premium dtscounts. A hnd may dcvlate front these rates and establish its own rates w~th the ao~roval of an independent acNarv and the department. - -

Section 812. Each fund shall request classifications for its participants from the bureau or bureaus approved bv the commissioner and shall utilize those classifications makinq assessments based upon rates as utilized bv the State Workmen's Insurance Fund for such classification except as provided in section 811. The fund shall pav the appropriate bureau a reasonable charge, approved bv the department. for this service. The fund mav appeal classifications as provided in the applicable sections of the Insurance Company Law of 1921 for other P~"~...,P."

1921 ScctlJn X I 5 tal A report shall be prepared by each iund

!or each dnnuul reportine period and %hall he f~led u ,~th the Jepartmeoi and mddc ava~!ahlc to each lunrl mcmbcr.

(b) The information contained in the annual report shall include. for each member of the fund and the fund itself:

( I ) Summaw loss reports. [2) An annual statement of the financial condition of the

fund prepared bv a certified public accountant and performed in accordance with generally accepted accounting principles.

(3) Reports of outstanding liabilities showing the number of clatms, amounts paid to date and current reserves as certified by :,,I -. indzn,lr.nt actuar)

14, S u h t h c r i n l ~ r r n ; i t ~ ~ ~ n a5 reuuircd bv r e r u l a t t < ~ ,&rt1~"t.~mn!a1hc dppliiabI< 10 a p p 1 1 c a . ~ iot sell-msurance


1 1 Custodial account for self-insured em~lovers for the

insured emplovers. (2) Custodial account for self-insurance ~ool inn as defmed

under section SO1 for the exclusive benefit of claims arising from defaulting members of poolinn mannements.

(d) The secretw shall be the administrator of the fund and shall have the vower to collect, dispense and disperse money from .LA c..-

Section 903. The fund shall be maintained to make payments to any claimant or his dependents upon the default of the self-insurer liable to pay comuensation due under this act and the Occuoational Disease Act or costs associated therewith and shall be maintained in an amount sufficient to pay such com~ensation and costs or reasonably anticipated to be needed by virtue of default by self-insurers.

Section 904. (a) When a self-insurer fails to pay compensation when due. the devartment shall determine the reasons for such failure.

(b) If the department determines that the failure to pay compensation is due to the self-insurer's fmancial inabiliw to vay comoensation. the department shall notih, the self-insurer of same and direct comuensation to be paid within fifteen days of such

lc) If the self-insurer fails to vav the compensation as directed and within the time set forth in this section the department shall declare the self-insurer in default.

/dl Whenever the department determines that a default has occurred it shall:

(1) Investigate the circumstances surroundinn the default. the amount of security available and the ability of the self-insured . . - . to cure me default.

( 2 ) Determine whether the liabilities of the self-insurer for compensation exceed or are less than the security:

(i) If the liabilities are less than the security, the department shall demand the custodian of the security utilize the security to cure the default and the department shall monitor the situation to insure that com~ensatiou is paid as due under this act or the Occupational Disease Act.

lii) If at any time the liabilities exceed or can reasonably be e" ---.- 2.- -.---- '"- .. - hs o ~ m i o n of the department, tLc ueparcmenr may oraer payment b; the security into the fund's av~ropriate custodial account, and shall order ~ a n n e n t from the Guaranty Fund, as avpro~riate. to cure the default and insure that w--p-.:--: :J s . +h;= ..-* -- *he 3ccupational rZlrra~ruu 1b ~ a ~ a as aue unaer ,.- ,,. ,. ,., .

ace A r t

"Guarantv Fund" or "fund" means the Self-Insurance Guaranty Fund established in section 902 for defaults which occur on or after the effective date of this article.

"Security"means surety bonds, cash, nenotiable securities of the United States Ciovernment or the Commonwealth or other neaotrable securities. such as letter of credit, acceptable to the Insurance Department which are posted by the fund to guaranw the payment of workers' compensation benefits.

"Self-insurer" means an employer exem~ted under sectlon 305 or a uroup self-insurance fund permitted to operate under Article VIII. 12) Appear and represent the Guaranty Fund in any

proceedinns in bankruptcy involving the self-insurer on whose behalf payments were made, includinn the ability to appear and move to lin any stay orders affectlnn payment of compensation.

(3) Obtain, in anv manner or by the use of any process or procedure, i nc lud in~ but not limited to, the commencement and prosecution of legal action, reimbursement from a self-insurer and 11s successors, asslnns and estate all moneys paid on account of thc self-insurer's oblination assumed by the fund. including, but not limited to. reimbursement for all compensation paid as well as reasonable administrative and leual costs associated with such


(4) Purchase reinsurance and take aov and all other action which effects the purpose of the Guarantv Fund.

Section 906. fa> (1) Securitv or funds from security demanded and paid to the department under section 904 shall be deposited into the Guarantv Fund.

(21 These funds and interest thereon shall be searegated in within the Guaranty Fund bv the individual custodial accounts ' - -

custodmn and mamtamed solelv for the pavment of compensatton or costs assoc~aled therewtth upon order of the department to the emploves of the defaultmn self-msurer provtdmn the securtw from the aporopriate custodial account.

(31 If there are funds from securitv or interest thereon

custodial account. Section 907. (a) On a date to be determined bv the

department following the effective date of this article. emplovers who are self-insurers as of that effective date shall pav an initial assessment of one-half per centum of the comoensation paid by each self-msurer m the vear ~reccdmn the assessment Self- insurers who. pnor to such effect~ve date, were not self-msurers, shall pav an assessment based on one-half per centum of thetr modlfied manual premlum for the twelve months tmmedtately prior to becoming self-insurers.

lb) (1) The department mas. in addition to the initial assessment, from time to time. assess each self-insurer a pro rata share of the amounts needed for the fund to cam, out the requuements of thls arttcle.

(21 Such assessments shall be based on the ratn, than each prtvate self-msurerb payments of compensatton hears to the total compensatton patd by all self-msurers m the year precedma the year of assessment. -~ -

(31 In no Gent shall a self-msurer be assessed m anv one calendar year more than one per centum of the compensatlon patd bv that self-msurer d u n n ~ the prevtous calendar vear.

( C I A self-msurer whlch ceases to he a self-msurcr shall be liable for any and all assessments made pursuant to this iection - during the period following the date its authoritv to self-insure is withdraw, revoked or surrendered until such time as it has dischareed all obligations to oav comoensation which arose during the period of time said former self-insurer was self-insured. Assessments of such a former self-insurer shall be based on the compensation paid by the former self-insurer during the preceding calendar vear on claims that arose during the period of time said

policsholders' operations and shall tticlude surveys, recommendations. traininn programs, consultat~ons. analvses of accident causes. industrial hygiene and itidustrial health services to implement the pronranl of accident prevention services. Tlie insurer, pursuant to its responsibilities under this section, shall employ or o:henvise make available qualified accident and illness prevention personnel. Such personnel shall meet the qualrficatio~ls set forth in regulations issued by the de~artnient.

[h) A self-insured employer shall "laintarn an accident and illness prevention program a s a prcrequtatr Tor rutelitto~i of its self-insured status. Such prarratn shall he adequate to furntsli

prevention services. (2) The number and qualifications of field safety

representatives employed bs the insurer. (3) The number of site inspections performed. (4) Any accident prevention services for which the insurer -

contricts. (5) A breakdown of the premium size of the risks to which

the insurer orovided services. ( 6 ) Evidence of the effecttveness of and accom~lishments

in accident prevention. (I7 Failure to maintain or provide the accident prevention

services required by this section shall constitute a continuinn civil violation subiect to a maximum fine of two thousand dollars

act. (n) The insurer, the agent, servant or em~love of the insurer

and the past and present emplover and emplove members of the safety commtnee establtshed under sectton I002 shall not be ltable on any cause of actton or m any woceedme, ctvtl or crunmal. artsmn out of or based upon alleeattons and ~leadmns relatmp to the performance of servlces under or m complrance with thts article Thts tmmuntty shall not, however, affect the ltabtlity of the emplover or the msurer for comoensatlon as otherwtse ~rovtded tn this act The recommendatrons. findmas and nitoutes \,I a pafets cdmnttttee shall nat be admtss~ble e\tdence m a 4 o, 11 ";I,.>II 1- hehalis?f an empl,,se aeamst a thud Dart1 W r J t n w an) Inlury ~ncuncd to the course and scope of employment.

Sectton 1002. (a) An insured emplover mas make wlication to the department for the certification of any establtshed safety commtttee operative within its workplace, developed for the purpose of hazard detection and accident prevention. The departntent shall develop such certification -

[bi Uooti the renewal of the em~loyer's workers' compeiisat~on pohcs next follo\vmn recerpt of department e r 1 1 c t n I 1 sl~dl: C I ? a i t \e per centum d&sc,!u!,l IN lhc r.$lr, .)r ra lh 3ppl~2ahlc 13 the poltcv tor a pcrh?d 01 one year.

ARTICLE XI. INSURANCE FRAUD

Secttan 1101. The followinn words and phrases when used in rhis arttcle shall have the rneantnns given to them in thls section unless the context clearly tndicates otherwtse: -- p~

" A t t c ~ ~ ~ i y " tlieaiis i t 1 ilid&tdual admtttrd by the Pr~insslvania Supreme Court to practice law in this Cotiim~~n\veaIth.

accident prevention requtred by thc naturc of 11s hur~n~.ss and sliall I


division. acting pursuant to section 1207. shall be immune from civil or criminal liability ar is in~ from the supplv Or release,of wrinen or oral information to any entitv dulv authorized to recerve such information by Federal or State law. or by lpswance D~ srtment re uhtions. only if the information 1s supplied to the a :nc in comRection with an allegation of fraudulent conduct on Ze of an" Derson relating to a violation of this article and the insurer, agent. servant or employe or the division bas reason to believe that the information supplied is related to the alleaatlon of

5 ) ~n subsequent fiscal years the total revenue derived from the aAessments shall not increase by a greater percentage than the annual percentage increase in the Consumer Prlce Index for al l Urban Wage Earners during the arior calendar Year,as certified bv the commissioner as of June 30 of the fiscal vear m which the new assessment is to be made.

6) ~ f t e r incidental expenses sixN per centum of the funds to be Lsed for the pumoses of this skctlon shall be provided to the division for mvestigative work. and fortv per centum of the funds shall be distributed to district attornevs, pursuant to, a determination by the cornmissloner as to the most effective distribution for purposes of the investination and rasecution workers, corn ensation insurance fraud cases- The

:ommissloner shall consideriopulation and blstorlcal mcldent of insurance fraud when awarding money to district attorneys.

/4) The number of cases prosecuted using funds received under Article XI. the number of cases prosecuted by the Attorney General and the number of such orosecutions which resulted in


and sub~ect to pay a fmc of not more than fifteen thousand dollars (SL5.0001. or to undergo I mprlsonment for a per~od of not more than seven

(b) Each district attorney desiring a portion of the funds shall submit to the division a plan detailinn his proiected use of any monevs which may be provided. The plan shall include a detailed accountina of assessed funds received and expended in prior years. including at a minimum:

/ I ) the amount of funds received and expended; 12) the uses to which those funds were out. including

pavment of salaries and expenses, purchase of equipment and su~plies and other ex~enditures by type;

13) result achieved as a consequence of expenditures made. including the number of investinations. arrests. indictments. convictions and the amounts oriainallv claimed in cases prosecuted com~ared to payment actually made in those cases: and

(4) other relevant information which the division may reasonably require. The plan shall be submitted within ninety davs of the deadline established by the division.

(c) Anv district attorney receiving funds under this section shall submit an annual report to the division regarding the success of its efforts.

[d) Documents required under this section shall be public records.

Section 1204. The commissioner shall annuallv compile and report to the General Assembly on or before March 1 the following information for the previous fiscal year:

(1) The number of cases reported to the division. (2) The number of cases reiected for which an investigation

was not initiated by the division due to insufficient evidence to proceed, and the number of reported cases reiected for which an investigation was not initiated by the division due to any other rea~on.

13) The number of cases that were ~rosecuted in cooperation with Commonwealth licensina agencies and the number of such prosecutions which resulted in criminal convictions or disciplinaw action against a lawver or health care provider.

criminal convictions. I years. or both."

[c) Antifraud ~ l a n s shall be fded with the department. If, after review, the commissioner fmds that the antifraud plan does not comply with subsection (b). the antifraud plan may be disapproved. Notice of disapproval shall include a statement ofthe specific reasons for such disapproval. Anv plan disapproved by the commissioner shall be refded within sixtv days of the date of the notice of disapproval. The commissioner may audit insurers to ensure compliance with antifraud plans.

/dl All insurers shall annually provide to the department a summaw report on actions taken under the plan to prevent and combat insurance fraud, including. but not limited to, measures taken to protect and ensure the integrity of electronic data- processing-generated data and manually compiled data. statistical data on the amount of resources committed to combating fraud and the amount of fraud identified and recovered during the reporting period.

(e) Insurers that fail to file timely antifraud plans as required by subsections (a) and (c) shall be subject to the penalty provisions of section 320 of the Insurance Company Law of 1921. Insurers that do not make a good faith attempt to file an antifraud plan which complies with subsection (b) shall also be subiect to the penalty provisions of section 320 of the Insurance Compan Law of 1921: Provided. That no penalty may be imposed for thi fust filing made by an insurer under this article. Insurers that fail to follow the antifraud plan shall be subject to a civil penalty for each violation, not to exceed ten thousand dollars ($10,000) at the discretion of the commissioner after consideration of all relevant factors. including the wilfulness of any violation.

Ln No later than one hundred twenty days after the effective date of this section, all applications for workers' com~ensation insurance. renewals and claims forms shall contain a statement that clearly states in substance the followin&

"Any person who knowingly and intentionally files a fraudulent application or claim shall, upon conviction. be guilty of a felony of the third degree

( 5 ) An estimate of the economic value of insurance fraud by woe of insurance fraud.

(6) Recommendations on ways insurance fraud may be

claims fraud. (2) '1'0 revlew clams m order to detect evtJence of poss~blc

msurance fraud and to mvestlwate clauns where fraud 1s suspected. (3 1 To report fraud to approprlale law enforcement agenclez

and to cooperate wlth such agenctes m theu prosecutloo o i lraud casts

(4) To undertake LIVI I act~ons against persons who have cnnaecd m fraudulent actlvltles

(51 To report fraud-related data to the dlv~slon. (61 To ensure that costs ~ncurred as a result of detected

Insurance fraud are no1 ~ncludcd many premlurn rates as provrded m scctlon 1206

Section 1206. Any insurer licensed to w%te workers' compensation insurance in this Commonwealth shall ensure that costs associated with detected insurance fraud are not included in any premium rates.

Section 1207. (a) The division shall maintain and operate a deoositorv data base containing concluded and current fraudulent claims investigations. The data contained shall be lmtted to Elorma~ron whzch the Lommlssioner determmes IS

necessary for the aggrcsslve and effecuve rnvestlnatlon and monlrormn of workers' compensatlou msurdnce fraud clams

Jb) Upon written request to an insurer by an authorized governmental agency, an insurer or agent authorized bv the insurer to act on its behalf sball release to the division all relevant information deemed important to the division by the commissioner relating to any soecific workers'comoensation fraud investigation.

[c) (1) When an insurer knows or reasonablv knows the identity of a nerson who it has reason to believe committed a fraudulent act relating to a workers'cornpensation insurance claim or has knowledge of a fraudulent act which is reasonably believed not to have been reported to an authorized aaency, the insurer or its anent shall notify the local district attorney and the division. The insurer shall state in its notice the basis of its knowledge or reasonable belief.

(2) (i) if. by its o m inquiries or as a result of comolaints or as a result of notification by an insurer, the division rea- knows the ~dentity of a person who it has reason to believe ' committed a fraudulent act relating to a workers' compensation insurance claim, written notification shall be provided to all such persons no later than sixtq davs from the time the division reasonably knew the identity of the person believed to have committed a fraudulent act.

(ii) This notification shall include the basis of knowledae or reasonable belief.

C

1993 LEGISLATIVE J01 JRNAL - HOUSE 581

(iii) The division shall provide all persons who are impbcated in the notice with an opportunitv to present excul~atory evidence.

[iv) Such requirement for notification and for o p ~ o ~ l u n i to present exculpatory evidence shall be apdicable to all la: enforcement agencies. includinp. but not limited to. district anomevs.

fd) An insurer providing information to an authorized - -

governmental agencv ~ursuant to this section shall provide the information within a reasonable time, but no later than thirty davs after the date on which the duN to report arose.

fe) ( I ) Anv information acuuired pursuant to this article shall not be part of the public record. Except as otherwise rovided bv law, anv authorized governmental aaencv. insurer or

:gent which receives anv infonuation furnished pursuant to this article shall not release that information to any person not authorized to receive the information under this article. A person who violates this clause is guiltv of a misdemeanor of the third d m

(2) Ihc ev~dence or mformat~ou descr~bed m thls sectlon -hall be pnvlleged and shall nut be subte~t to subpoena or subpoena duces tecum m a clvll or crunlnal procecdln~. unless, alter redsonable notlce tu any Insurer. dn agent or dulhor17ed governmental agenLv whch has an mlerest m the mformat~on. and a hearmg. the court delermmes that the P U ~ I I L Interest and any --

onnolog ~nvestlnatlon bv the authorwed aovernmental aeencv. msmer or anent. will not be ~eopard~zcd bv 11s dtsclosure or bv the lssuance of and compliance wlth a subpoena or subpoena duces

pursuant to this article or assists in any investigation of a suspected violation of Article XI coducted bv authorized governmental aaencv shall be subiect to any civil liabilitv in a cause or action of anv kind where the insurer. authorized agent or authorized governmental agency acts in pood faith, without malice. and reasonably believes that the action taken was warranted bv the then-known facts,obtained bv reasonable efforts. Nothing in this article is intended to, nor does in anv wav or manner. abrogate or lessen the existing common law or statutorv pr16lenes and rmmuoltles of an msurer or agent authorized bv the Insurer to act on 11s behalf, or anv authorized aovemmental agencv or lts employes.

(4) The department shall provide access for the Maiority C'hamen and the Mmor~tv ('haumen ul the A~propr~a t~ons Qmmlnee and the Bankma and Insurance (:omm~nee of the Senate and the Malor~ty C h a m e n and the M~nor~ty Chaumen of the Appruprlatians (:ommrttec and the Insurance Commlnee of the llouse of Ke~resentauves lo the dcpus~tory data babe for pumoses . . ConSlStent wlth thls artlcle.

Section 22. No later than December 31, 1993, the Secretary of Labor and Industry shall submit to the General Assembly an analysisof the average workload per workers'compeusationjudge and a plan to reduce the delays in deciding workers'compeusation

I petitions, including any necessary increases in the number of judges and supporting staff.

Sectiou 23. No later than December 3 1, 1994, the Secretary of Labor and lndusvv shall submit a renort to the General Assembly regarding thi feasibility of allocating a portion of the long-term savings from this act for a cost-of-living increase for persons receiving workers' compensation benefits-because of a total disability.

Section 24. Notwithstanding any other provision of law to the conlrary, regulations promulgated under the authority of section 306(f.I)(3)(ii) of the act, asamended by this act, shall not

lbe subject to the provistons of the act of October 15, 1980 (P.L..950, No.l64), known as the Commonwealth Attorneys Act, or the act of June 25, 1982 (P.L.633, No.181). known as the Regulatory Review Act.

Sect~on 25 . The Commonwealth, its polltical subdivisions, the11 offic~als and employees acting within the scope of their

duties shall enjoy and benefit from sovereign and offtcial immunity from claims of subrogation or reimbursement from a claimant's tort recovery with respect to workers' compensation benefits.

Section 26. (a) In order to provide an efficient implementation of t h ~ s act and to assure fair and equitable treatment of insureds and insurers, the order and adjudication issued by the commissioner, dated December 1, 1992, in re Workers' Compensation Rate Revision of 24.26%. is set aside as being in conflict with this act.

(b) The commissioner shall issue a revised order, based upon the data provided in the rate f i g for the order which is set aside under subsection (a) and the record relating to that filing, approving manual rates to be applicable to all new and renewal policies. In this revised determination of rates, the commissioner shall make an adiustment to reflect the savings estimated to be - - - produced by the lun~tatlons on payments to health care providers and by the other changes mcluded m &IS act and shall glve due consideration to the extension of trend factors for an additional year and the change in the Statewide average weekly wage as of January 1, 1993.

(c) Any insured that received an increase in premium cost as a result of the order and adiudication set aside under subsection (a) shall receive a pro rata discount on future policy renewals based on the relative difference between the revised rates issued under subsection (b) and the rate which was imposed as a result of the order and adjudication set aside under subsection (a).

Sectiou 27. For purposes of the initial Ning only, notwithstanding any other provisions of this act, the following provision shall apply:

(1) Each rating organization shall file, within 60 davs of the effective date of this act, a loss cost filing p&suant to section 709(c) of Article V ~ I of the act for new and renewal policies for workers' compensation insurance. Such filing shall be subject to approval or disapproval by the commissioner pursuant to Article VII of the act, but such approval or disapproval shall be made not later than 30 calendar days after fust receipt of the loss cost filing.

(2) In the absence of an order approving or disapproving the loss cost filing within 30 calendar days of its first receipt, the filing shall be deemed to meet all the requirements of this act.

(3) No later than 30 days from the date of the actual or deemed a~aroval of the above loss cost filing. each . . - lndlv~dual Insurer sball tile for the romm~ssloner's approval or d~sapproval provlsrons fbr loss adjusunent, expenses, assessments, taxes and profit and contingency allowances. The effective date of such filings shall be the date specified in the filing.

(4) On or before March 1, 1993, the commissioner shall publish an aggregate factor for loss adjustment expenses, assessments, taxes, profits and contingency allowances which insurers may use in the foregoing initial filings. Any insurer filing whichuses an aggregate factor not in excess of the foregoing factor shall be deemed approved upon filing for purposes of this section.

(5) The commissioner shall publish different aggregate factors for policies sold through independent agents and for policies sold directly to insurers. Section 28. la) The followinn acts and parts of acts are -

repealed, to the exient specified: Section 654 of the act of May 17, 1921 (P.L.682, No.284),

known as The Insurance Com~anv Law of 192 1 , except with regard to insurance as to liabilitj- under lhe ~ongshore and- arbor Workers' Compensation Act (44 Stat. 1424, 23 U.S.C. 8 901 el seq.).

75 Pa.C.S. g$ 1735 and 1737, absolutely. (b) The provisions of 75 Pa.C.S. $5 1720 and 1722 are

repealed Insofar as they relate to workers'compensation payments or other benefits under the Workers' Compensation Act.


Section 29. This act shall take effect as follows:


section ;hail take effect.immediately.' I a 5-pemn1 reduction in the pren&m if they establish a (4) The remainder of this act shall take effect in 60 worhlace committee,

( I ) The addit~on of Article VII of the act shall take effect immediately.

(2) The addition of Articles VlII and IX of the act shall take effect in 120 days.

(31 Sections 26. 27 and 28(a) of thrs act and this

On the question, Will the House agree to the amendment?

days, 90 days, 45 days just 2 years ago. Well, they are willing to reduce it once again to 30 days across the M, once again compromise in order to move forward in the process.

This amendment contains language that gives an employer C

The SPEAKER On that question, the Chair recognizes Mr. Adolph.

Mr. ADOLPH. Thank you, Mr. Speaker. This amendment, Mr. Speaker, deletes language that was

inse~ted on March 25 in the House Labor Relations Committee that increases workers' compensation costs, in the opinion of the small business community. Mr. Speaker, this amendment actually makes improvements to SB 1 that will fu~ther reduce the costs for small business owners.

Let us digress for just 1 minute and explain why it is necessary at this time to offer this amendment.

As a rank-and-file member, I have witnessed for over 2 years the procedural games and the political games played by both the House and the Senate when it came to addressing workers' compensation reform. The result of these games, Mr. Speaker, was a recent increase to your business owners, to your municipalities, and to your school districts of over 30 percent of their already high premiums.

This game must stop. The current system is out of control. No one in this House can disagree with that. I believe we are getting real close because we agree on many points.

The business community is willing to compromise once again with this amendment. One of the sticking points when we debated this issue on the floor of the House in 1992 and included in the Gladeck amendment today was a provision for a standard of evidence. Although the business community continues to believe that requiring a set standard of evidence is a very valuable tool, it is impossible to quantify the cost savings of this provision, and since it creates a political atmosphere, it is not worth the dollars saved. The small business community has deleted this language.

This amendment, Mr. Speaker, also includes a payment- without-prejudice provision, enabling all injured workers to immediately be@n receiving benefits. The employer has up to 6 weeks to decide whether or not to contest the injury. This provision, Mr. Speaker, will eliminate much of the current relationship between employer and employees as well as reducing the number of litigated workers' comp claims. This will result in speeding up the system, which is so desperately needed.

This amendment also, Mr. Speaker, maintains the medical and coordinated care organization language from SB 1, PN 447, but extends the 14-day rule to 30 days across the board. The Gladeck amendment on SB 1 extended the 14-day rule to 30 days for doctors and 45 days for coordinated care organizations. I have been told by the people in the Labor Relations Committee that the business community wanted 120

I have just mentioned a couple issues that the small business owners are willing to compromise in order to reform = the system. Now let us talk about issues that must be included to reform the system.

Medical cost caps at 117 percent for primary physicians and 120 percent for specialty doctors.

Unemployment compensation offset for workers' compensation benefits. Remember, Mr. Speaker, what system are we here to reform? Common sense should prevail. The average Pennsylvania employer is paying 3 112 percent in Pennsylvania unemployment tax on their employees' first $7,000 in wages. Pennsylvania employers are paying $20, $30, $40, as high as $50, on every $100 their employees earn. We must reduce workers' compensation benetits with the unemployment benefits, not the reverse.

A real cost reduction for small business is the corporate officerJowner exemption. Family businesses would really benefit from this provision. They would immediately receive reductions in the premiums, depending on the size of the company and the employees. The Lloyd bill, Mr. Speaker, starts this exemption at $75,000. Close to 70 percent of the businesses in Pennsylvania earn less than $40,000. The Lloyd bill does not help the small businessman when it comes to the

w corporate exemption. Why start at $75,000?

The amendment also provides the minimum benefit shall be lowered to 50 percent of the statewide weekly wage or 85 percent of the worker's average weekly wage. The Lloyd bill tempts the employee to extend time to 7 weeks in order to receive higher benefits. Let us be realistic. My parents raised some fat kids, but they did not raise any stupid kids. No one is going to go back to work for $80 when they can stay home and get $158.

Now, Mr. Lloyd just explained concerning the Pennsylvania special tax provision. Mr. Lloyd forgot to mention that that is if you are the household member with dependents. Most of these minimum-wage earners are dependents and do not qualify for special tax relief in Pennsylvania. He forgot to mention that to you.

I did not consider myself an expert and I do not consider myself an expert on workers' compensation reform. I do not know the language like a Bill Lloyd or a Joe Gladeck. As you see, I do not have any staff people up here helping me out on this-but I do have Matt Ryan beside me, he just told me-hut I do have firsthand experience of understanding the cost of workers' compensation, and workers' compensation premiums ' are costing employees jobs; it is costing businesses to close and relocate out of Pennsylvania.

As a d-and-fi le member who has been frustrated with all the games back and forth, I offer this compromise and ask for

C your support. For your information this amendment is being

1993 LEGISLATIVE

supported in full by the NFIB (National Federation of Independent Business), the Pennsylvania Retailers' Association, the Pennsylvania Builders Association, and n u m e w other business organizations as well as my lwal c h m h a of commerce. Let us put politics aside and the special interest groups aside and vote for a bill that will give immediate relief to the small business community.

I want to thank my colleagues on both sides of the aisle for their support and for their consideration. Thank you very much.

The SPEAKER The gentleman, Mr. Fajt, from Allegheny County is recognized.

Mr. FAIT. Mr. Speaker, I will hold off for a little bit 'Ilmk you.

The SPEAKER. The gentleman passes. The gentleman, Mr. Piccola, is recognized. Mr. PICCOLA. Thank you, Mr. Speaker. The Adolph amendment contains some very good material

for meaningful workers' wmpensation reform, but in my estimation, it does not contain three essential elements that are necessary for true and meaningful workers' compensation reform, and for that reason I oppose the amendment.

- The amendment does not provide a provision that will eliminate benefiu being paid to people who are incarcerated within the Commonwealth of Pennsylvania. That is an absolutely essential reform that must be obtained if we are to have true and meaningful cost reduction in the system.

Secondly, the Adolph amendment does not provide for a true standadof-evidence requirement for reasoned decisions. It does provide for reasoned decisions, but it eliminates the requirement that those decisions be based upon substantial evidence. We must have substantial evidence required to he found by referees if we are to eliminate the frivolous actions . and claims that are brought in this system.

Finally, there is a provision in the Mellow-Madigan SB 1 that allows for informal conferences to he called to settle these cases before they are reached by attorneys, before a petition is filed. This amendment offered by Mr. Adolph requires that those informal conferences can only take place when and if a petition has been tiled - in other words, after an attorney has gotten involved in the case.

I do not think, Mr. Speaker, in spite of the fact that the Adolph amendment contains a lot of good material, that it goes

- a far e m g h in seeking true and meaningful workers' compensation reform, and I would urge that we defeat the amendment.

The SPEAKER The Chair thanks the gentleman and recognizes Mr. Lawless.

Mr. LAWLESS. Thank you, Mr. Speaker. Our small businesses cannot afford the recent 24percent

increase in workmen's compensation. The Adolph amendment offers relief to small business men and women in Pennsylvania. For example, under the Adolph amendment, a family-owned business would have their workmen's compensation expenditure reduced and in some cases eliminated.

JOURNAL - HOUSE 583

I commend Representative Adolph for his effort to move forward with workmen's compensation reform, and I urge my colleagues in the House to support the small business community and support the Adolph amendment Thank you.

The SPEAKER The gentleman, Mr. Flick, is recognized. Mr. FLICK. Thank you, Mr. Speaker. Much of what has been said discusses what would be an

ideal bill - the ideal bill for the business wmmunity or the ideal bill for the labor community.

The Adolph amendment may not cover every single business consideration, but it covers a lot of them, and if this workers' comp legislation leaves this House, it will be a better bill for business with the Adolph amendment in it than with the bill as it now stands. We will not have the bill that we want, Mr. Speaker. We do not have the majority. But we do have an opportunity to make a bad bill better. We have an opportunity to support the small businesses, the builders. We could do some good here. Let us at least send it over to the Senate being a better bill than what it is now, and let us negotiate from there on.

I urge support of the Adolph amendment. It is good for business. We should support it. Thank you, Mr. Speaker.

The SPEAKER The gentleman, Mr. Fajt, is recognized. Mr. FAIT. Thank you, Mr. Speaker. I would like to touch on one point, and I would like to

come back and have a last word on the amendment before it is voted finally.

There has been some concern about what the Adolph amendment does to the standad-of-evidence rule. I think it is very, very important that all of us understand that the Adolph amendment does not change the standard of evidence as set forth in Representative Lloyd's bill. The standadof-evidence section was section 423 of the Mellow-Madigan bill. It absolutely did make a change in the standard of evidence. There is no amendment of that section 423 in the Adolph amendment.

The Adolph amendment does deal with reasoned decisions, basically saying that a workers' comp referee must state why they found for the employee or for the employer. That is the only thing that this amendment does on the reasoned decision issue.

Labor has said that this changes the standard of evidence. They are looking at the standard of evidence in a macro sense, and that is not necessarily true. I think it is disingenuous of them to take that point of view. The only thing that the Adolph amendment does is require the referees to put forth in writing a reasoned decision. I think it is very important that all of us understand that, because there is a lot of misinformation going around that says the Adolph amendment changes the standard of evidence. It does not. Thank you, Mr. Speaker.

The SPEAKER. The gentleman, Mr. Lloyd, is recognized. Mr. LLOYD. Thank you, Mr. Speaker. Mr. Speaker, I oppose the amendment. There are a couple

things in this amendment which are done which would reverse agreements which we have reached with Senator Mellow and

584 LEGISLATIVE

agreements which we have reached with the business community.

Number one, we have previously agreed with them that in the case of seeking treatment from a coordinated care organization, the period of time would be 45 days. That was our agreement, and I want to stick with that agreement. This amendment would change it to 30 days across the board.

Nwnber two, an issue about which we heard a great deal last year, especially when we had a bill in special session that did not address it at all, has to do with whether a person ought to be able to collect workers' compensation if he is incarcerated aAer a conviction. Once again, we have agreed with Senator Mellow and Senator Madigan, we have agreed with the business community that that should be prohibited. The prohibition is in the bill. That pmhibition is removed by the Adolph amendment.

In addition, Mr. Speaker, the same problem with competitive ratemaking language which we talked about this morning is found on page 28 of this amendment, which says by law that "Rates in a competitive market are not excessive." Il is the view of the Insurance Department, with which I concur, that it would be an impossibility for the Insurance Commissioner to make a legally sustainable finding that there is no competition in the workers' compensation marketplace when there are 300 or more companies selling that insurance, and what that means is that in future years it would be possible for companies to raise the overhead and pmfit portion of their rdtes without any review by the Insurance Commissioner at all.

Something else which has not been mentioned which is in this amendment that members should be aware of is that there is a $3-million assessment on the business community to fund an antifraud bureaucracy in the Insurance Department, a bmaucracy which the chairman of the Workers' Compensation Subcommittee for the State Chamber of Business and Industry told me had been a failwe in California, that simply costs money but has not succeeded in reducing fraud.

Finally, Mr. Speaker, on the issue of reasoned decisions, it should be noted that according to the Strube decision handed down by our State Supreme Cowt last June, referees are expected and are in fact giving written reasons for their decisions. I believe that the language on reasoned decisions will be a temptation for more litigation and more appeals.

Mr. Speaker, for all of those reasons, I would join with the request that we defeat the Adolph amendment.

The SPEAKER The Chair thanks the gentleman. Does the gentleman, Mr. Fajt, wish to be recognized for the

second time? Mr. FAJT. Thank you, Mr. Speaker. I would just like to make a comment on the amendment. I

think that all of us have had workers' compensation up to the top of our heads. I know I have. I am sick and tired of the issue. I want to resolve the issue. That is what I am here for, and I think that most of us have that same belief that that is what we are here for.

With all due respect to my colleague, Bill Lloyd, there are very few people, if anyone, that I have more respect for in this


House than Biil Lloyd but the bottom line that all of us have to understand and think about is, does passing the Lloyd amendment help us resolve the workers' comp issue? The answer in my mind is no. All of you have to make that same decision, though. I think the Adolph amendment puts us a lot

C closer to what the Mellow-Madigan bill is than the Lloyd bill does, and I think if we are going to resolve this issue, all of us need to consider whether we are going to be obstructionists or - whether we are going to move the process along. If we want to move the process along, we vote for the Adolph amendment. If we want to play political football, which we are pretty good at around here, then we can vote for the Lloyd bill. It is going to go over to the Senate, and it is going to sit there again.

a You hear a lot of rhetoric about the Governor does not like

this and the Governor does not like that. I do not buy any of it. If we put a workers' comp bill on the Governor's desk that is a reasonable bill, which I believe the Adolph amendment is, I will guarantee you, the Governor is going to have a hard time vetoing that, and let him make that decision Put the onus on his back and let him make that decision as to where he wants to be with the workers' comp legislation in Pennsylvania

Finally, I will get off my soapbox, but I would like to say to the Republicans on the other side of the aisle, we heard from a couple of them here today that said that they could not support this because it did not go far enough. I am going to tell you pointblank, this is as good as it is going to get. So you either vote for this and move the process along, or you vote against it, play political football, and we are back to where we * were last year. Thank you, Mr. Speaker.

The SPEAKER. The gentleman, Mr. Adolph, is recogwed. Mr. ADOLPH. Mr. Speaker, I would like to yield to

Representative Mihalich. The SPEAKER The gentleman, Mr. Mihalich, is

reoognized. Mr. MIHALICH. Mr. Speaker, talking about political

football, we are playing with a football now that does not have any air in it.

The previous speaker talked about politics and talked about compromise and talked about this being the end of the ball game if we do not adopt the Adolph amendment. He is not asking for a compromise; they have had wmpmmise more than enough. He is asking for capitulation, and he is saying if we do not capitulate, we are going to hit you on the head. I reject the inference, I reject the implication that if we do not adopt the Adolph amendment, that we are going to somehow bring this State to a standstill. And I accept the challenge to debate the issues further if necessary, next week if necessary, the week afler if necessary. I expect the debate, regardless of what happens, to go on in the conference committee, and 1 mnk that the people in favor of the Lloyd amendment have been on a continual slide.

I do not like the bill; I am going to vote for it. I think it has gone too far in compromising, and 1 also reject the notion that the object of our exercise here in the House today, as was said by the previous speaker, is to bring our bill closer to the

C


Mellow-Madiean bill. That has never been mv obiective, and I bill for "over $60,000. This is a 400% increase! This is totally I do not t& it is the objective of most members of this House, that our bill will be fine and it will be acceptable if it becomes in fact identical to the Mellow-Madigan bill.

The insurance companies of Pennsylvania in their m y demands have adopted a principle that this Nation rejected last year, and that is the tickle-down theory. Somehow they have convinced people that if we make them healthy and wealthy, that the small businessman in Pennsylvania will get the leftovers or somehow that wealth will trickle down. Let me tell you that the small businessmen in Pennsylvania are huriing, and I do not have to convince you of that, but what I will convince vou of. I horn to convince vou of. is that the Llovd amendment addresses the concerns of small businessmen in a much more substantial and realistic way. The Lloyd amendment will vimally insure a reduction in rates whereas the Adolph amendment -does not.

For that reason and many, many others, I say we reject the Adolph amendment, and if necessary, we have been working on this for a year and a half; I am willing to work on it longer. This is not the end of the ball game. We should not accept that rhetoric that says, this is it; take it or leave it. The Adolph amendment should be judged on its merits, and I say if we . judge it on its merits, take it out of a political context, we should reject it today. Thank you.

The SPEAKER The Chair recognizes the gentleman, Mr. Heckler.

Mr. HECKLER Thank you, Mr. Speaker. Mr. Speaker, the gentleman Mr. Lloyd, argues, among

other things about the Adolph amendment, that it would abrogate agreements that presently exist.

It certainly seems clear to me that if we pass the bill as it preeently stands and send it back to the Senate, that that will - not meet with any agreements with the Senate, and certainly the gentleman may indicate otherwise if he believes otherwise, but I think we all know that if we send the Lloyd hill back to the Senate, we are in for some lengthy period of batting things back and forth and further discussion.

I have some misgivings, for the reasons outlined by the gentleman, Mr. Piccola, about the Adolph amendment which is before us, but I am prepared to hold my nose and vote for it as a step in the right direction. Either we eventually move to clmure and help particularly the small business people of this State who are literally being driven out or we might as well iust auit and eo home. - . .

I urge the ladoption of the Adolph amendment for want of our ability to achieve anything better.

The SPEAKER. The gentleman, Mr. Adolph, is recognized for the second time.

Mr. ADOLPH. Thank you, Mr. Speaker. I would just like to take a few minutes of your time and

read to you one short paragraph fmm a local businessman in my district, 80 percent of whose employees are minimum-wage employees. "In 1988 1 paid $12,500 a year in Workmen's Compensation Insurance. This year (1992) I..."just received a

ridiculous; no wonder small businesses cannot stay inbusiness! "Please, isn't there something you as Legislaton of the

State of Pa. can do to stop this insanity?" I will leave you with this: This is the longest football game

1 have ever been involved in. It is over 2 years now. I would like to say that if we cannot do something for the

small businessmen in Pennsylvania when they tell us they support something, who are you listening to? Who are you listening to? The small businessmen across this State are supporting this bill. We do not tell them how to tun their business. They are telling us this will help them.

Please s u m n this amendment. Thank vou.

On the question recurring, Will the House agree to the amendment?


YEAS-97 Adolph Fajt Laub Allen Fargo Lawless Argall F m e r Lee Armstrong Fleagle Leh Baker Flick Lynch Barley Gamble M a i t l d Banisto Gannon Marsim Birmelin Geis Mary Bmwn Galach Micozlje Bush G&ll Milla Carone GNW Nailor Cawley H a m Nickol Carar Harley NYW Chamvick Hasay Penel Civera Heckler Petlit Clark Heonersey Phillips Clymer Herman Pins Cohen, L. I. Hershey Plam Cornell Hess Raymond D e m ~ s e ~ ~ ~ t ~ h i o ~ n n ~ e b e r Dent Idowlec &nard D m K- R&&s Durham King Rohrer Egolf Krebs Rubley Fairchild

NAYS-104

Aco- Freemo MayRnik Bebko-Jones George McCall B p l d Gi#iatti MEOeehan Belfanti Gladeck McNdly Bishop Gardoer Melio Blaurn

Bunt Butkovitz Buxton Calta@rone Cappabiaoca Cam Cohen, M. Colsfella Colsizm Comigan Cowell COY curry

Gmiaa Haluska Hughes Itkin J a m Jarolin Josephs Kaiser Kasunic Keller Kirkland Kukavlch LaGmtta Laugblin Laierer

Michlwic Mihdich Muody Murphy 0'B"ea O'DOmeli Oliver Pesn P a m a Petmne Piccola Pirtella Reston R i c h a r b Rieger

R P ~ Sather Saurman w m Scheee Schuler Semmel h f i n i Smim B. Snyder, D. W. %I Stem S t 4 a Stinmatter Taylor, E. Z. Tomlinson True Tdli Uliana Vane

Scrimti set!,, S. S t a k k Stairs Steelman %ghnpr Stish S M a s m Tangrati Taylor, 1. Thomas Tigue Trello Trich Van Home veoo William Wogan Womiak



On the ouestion 1 give real attention to a real problem in the Commonwealth of will the '~cuse 'agree to the amendments?

The SPEAKER On t h question, the Chair recognizes Representative Brown.

Mrs. BROWN. Thank you, Mr. Speaker. As I had previously spoken on the House floor today on

the provision of hearing loss, this is very important to the manufacturing businesses in Pennsylvania. We have to keep in mind that we want Pennsylvania to be business friendly, and this would take us a step closer to accomplishing that.

The SPEAKER The gentleman, Mr. Lloyd, is recognized. Mr. LLOYD. Mr. Speaker, I agree that there is a problem

with hearing loss, and the problem really focuses on- There are two elements of the solution: Number one is, there should be some kind of partial benefit; and number two, there should be some reasonable statute of repose so that we make sure that these cases are brought within a timely fashion shortly after the person has been removed from the work environment where he contracted the problem. -

I do think that there is abuse going on in the system today. A problem is that there is certainly not universal consensus as to the exact way we ought to measure that hearing loss. It is - my understanding that one of the problems with this approach is that it relies on that machine that most of us had our hearing tested on when we were in school where you put up your hand if you hear the noise, but that it does not adequately test whether or not you can distinguish what is actually being said.

Mr. Speaker, I think that a better course of action on this particular issue would be to pursue negotiations either in a conference committee, if that is where this bill ends up, or in negotiations for subsequent amendments in the Senate, if that is the approach the Senate chooses to take. I am committed to do that, but I would ask that we oppose this amendment at this time. l'hank you, Mr. Speaker.

AMENDMENTS WlTHDRAWN - The SPEAKER The Chair recognizes Mrs. Brown for the

second time. Mrs. BROWN. Thank you, Mr. Speaker. I would like to thank and commend my fellow colleague on

the other side of the aisle for his commitment and willingness to have the hearing-loss language addressed in conference committee between the House and the Senate.

We need real negotiations on thts issue, and 1 take and respect your word on this issue, and therefore, I withdraw my amendment at this time, Mr. Speaker.

The SPEAKER. The Chair thanks the lady.

The Chair recognizes Representative Thomas. Mr. THOMAS. Thank you, Mr. Speaker. Mr. Speaker, as this House recalls, last year I raised this

issue of hearing loss, and I personally want to commend Mr. Lloyd and commend the people from both sides of the aisle

-'who dtd n a let this issue die and thank Mr. Lloyd for his willingness to take this issue up in conference committee and

Pennsylvania when we talk about workmen's compensation. ,~ So I strongly support Mr. Lloyd in his commitment, and r

thank Mrs. Brown for withdiawing her amendment based on Mr. Lloyd's commitment. Thank you.

The SPEAKER The Chair thanks the gentleman. The Chair recognizes Representative Williams from

Philadelphia. Mr. WILLIAMS. Thank you, Mr. Speaker. I, too, want to reiterate the comments which were made. I

recognize this is an issue which should have been dealt with and has apparently and is in the process of being dealt with. I commend Representative Lloyd for taking this under consideration, and I look forward to progress in terms of this issue. Thank you, Mr. Speaker.

The SPEAKER The Chair thanks the gentleman.


amended? Mr. HECKLER offered the following amendment No.

A0699:

Amend Bill, page 51, by inserting between lines 12 and 13 Section 17.1. Section 442 of the act, amended March 29,

1972 IP.L.159. No.61). is amended to read: ~~ -

section 442. [ ~ i i ] a)(l) Except as provided in subsection W counsel fees, agrLed upon by claimant and his attorneys, for servlces performed in matters before any referee or the board, whether or not allowed as Dart of a iudament, shall be approved by the referee or board as the case may ge, providing thecounsel fees do not exceed twenty per centum of the amount awarded. The official conducting any hearing, upon cause shown, may allow a reasonable attorney fee exceeding twenty per centum of the amount awarded at the discretion of the hearing official.

In cases where the efforts of claimants'counsel produce a result favorable to the claimant but where no immediate award of compensation is made such as in cases of termination or suspension the hearing official shall allow or award reasonable counsel fees, as agreed upon by claimant and his attorneys, without regard to any per centum

( b ) ('~uusel fecs fur servlces periormed in securina med~cal costs paid or payable to a provlder tor med~ual, suralcal or hosp~tdl treatment, accommodat~un. products or servlces provided lo the emplovz or counsel fees lor servlces performed in SecwinQ -- -

a cornmutatton shall be approved by the referee onlv where the reteree tinds that the ~omplex~ty of the tactual and legal issues invulvr.d, the sk~ll reuu~red, the dwat~on of the oroceedin~s and the time and effort required and actually expended iustifv the amount of the fee, which shall not exceed tweotv per centum of the award.


The SPEAKER. The gentleman, Mr. Heckler, is recognized.

Mr. HECKLER. Thank you, Mr. Speaker. Mr. Speaker, this amendment is considerably less cosmic

than an awful lot of the matters we have had before us today, but I would urge the House's attention to it.

As we dug into the workers' compensation law, it came to my attention that there are two areas in which legal counsel - lawers who represent claimants - may receive windfalls, may


receive substantially greater fees than would normally be the case in the rather wnse~ative system that has been set up to protect claimants. Now, let me say off the top, this is not a proposal that will necessarily save employers money; this is a proposal that, if it benefits anybdy, will primarily benefit claimants.

The m m a l workers' comp situation which we see litigated is one in which there is a dispute over disability and whether or not wage loss replacement should be paid. My amendment does not touch that. If you will notice, the section I amend, section 442, I make the present language (a). That caps fees at 20 percent for those kinds of situations unless the referee makes a special findmg that there is justification to go higher, in which case he can.

There are, however, two other kinds of situations which arise. One involves what we 011 wmmutations, situations in which everybody believes that somebody is totally disabled either temporarily or permanently and that the moneys they are entitled to are going to be reduced to a present value, a lump sum that the worker claimant is going to get. Typically, a lawyer will bewme involved. Sometimes that will involve a great deal of work and a substantial fee will be justified. Sometimes the commutation is even pmposed by the company who is predisposed to do it and there is a relatively short period of wrangling about exactly what that number will be.

A recent Commonwealth Court case of which I have been informed provides that it is virtually presumed that a 20- percent fee will be approved. Sometimes that 20-percent fee may be fair, but sometimes that 20-percent fee-a commutation can amount to hundreds of thousands of dollars in the appropriate case-is just plain excessive.

What my amendment says as to that situation and also the situation where medical fees are sought-which again may give rise to a substantial lump sum for not much effort, may involve a great deal of effort by the lawyer-what my amendment provides is that the referee will have to look at the justification for the attorney's fee. He is going to have to look at what the attorney did, what kind of skill was involved, the complexity of the litigation, and how hard and how long he worked in order to decide whether a fee of up to 20 percent is justified. Otherwise, he will approve a lower fee.

This is a protection for the worker, for the claimant, who will be paying those fees. I suggest that it is a way, an appropriate way, not a punitive way, in which the plaintiffs bar can make a contribution. As we have heard that everybody else, including the worker, has made a contribution to bring this together, this is an appmpriate way in which the bar can make a contribution, and I request your kind attention to this amendment.

The SPEAKER The gentleman, Mr. Lloyd, is recognized. Mr. LLOYD. Thank you, Mr. Speaker. Mr. Speaker, there are a couple things which members

should be aware of when they vote on this amendment. First, under the law now-and if you look up at the top of the amendment in what would become subsection (a)(l)-there is currently a presumption that a 20-percent award is per se

reasonable. However, there is also the discretion for the referee to determine on a case-by-case basis, depending upon the complexity of the issue, that 20 percent may in fact not be appiqniate and that some higher number is necessary.

The issue really becomes access to the system in order for C

an individual with a complicated medical problem to get his +

case heard, and in some instances-and maybe in only a few, but that few might be constituents in your district or mine-in some instances, there will be a lack of access if this amendment goes in.

Secondly. Mr. Speaker, while it is popular to say that we ought to limit the amount of money which is taken out of the claimant's award and given to the attorney for the claimant, it should also be noted that there is no counterpart provision which says that we are going to look at the amount of money charged or spent by the defense in t y n g to avoid paying the comp claim of the injured worker.

Mr. Speaker, if we are not going to have this rule go both directions so that we have an opptmi ty to save some money for employers in this State by controlling the amount of money that insurance companies spend on lawyers, then I do not think we ought to impose a restriction on the amount of money which is paid by a claimant.

So, Mr. Speaker, for those reasons I oppose the amendment.

The SPEAKER The gentleman, Mr. Chadwick, is recognized.

Mr. CHADWICK. Thank you, Mr. Speaker. I rise in suppon of the Heckler amendment, and I would w

just like to make a few points in support of that amendment. There seems to be a presumption sometimes on issues of

this nature that when we Republicans offer an amendment, it is some sort of pmbusiness amendment. This is not intended as a pmbusiness amendment. It does not put so much as a penny in the pockets of business.

It is purely a prc-injured-worker amendment. We are talking about those limited cases where attorneys e m windfalls; they earn legal fees that they did not eam by showing up in court, filing a couple of papers, and getting a huge, sometimes enormous legal fee. We feel in those cases that that money more properly ought to be in the pocket of the injured worker. This is a very limited amendment addressed just to those circumstances. If you truly care about i n j d workers, you ought to be supportive of this amendment because it only limits those windfall awards.

I urge an affirmative vote for the Heckler amendment. The SPEAKER. The gentleman, Mr. Heckler, is recognized

for the second time. Mr. HECKLER Thank you, Mr. Speaker. Very briefly, I would underscore, the idea for this

amendment did not come from the business community but . rather from a referee of my acquaintance who has had to approve fees which he felt to be unconscionable on certain occasions in the past.

The only other comment I would make, Mr. Lloyd argues if we are going to do this, should we not somehow cap or limit

C


the fees paid to defense counsel by the insurance companies? Surely, Mr. Lloyd cannot argue that the individual claimants, the kinds of folks you represent in your district, are in the same bargaining position, have the same sophistication in terms of their ability to determine whether or not they are being charged a fair fee; that an immnce company that hires attorneys on an ongoing basis whose business literally is litigation obviously has tremendous leverage in terms of deciding whether they are going to move their business from one attorney to another.

I urge the serious consideration and I hope the adoption of this amendment. Thank you.

The SPEAKER The gentleman from LuMx, Mr. Tigue, is recognized.

Mr. TIGUE. Thank you, Mr. Speaker. Mr. Speaker, I rise to support the Heckler amendment. There are other examples such as black lung where

attorneys' fees are paid after they are submitted and it is appmved by the referee or the judge in that particular session.

This is another fom of compensation, and I think Mr. Heckler is absolutely correct. Whatever the counsel is given, if it does not warrant 20 percent of the award, these anomeys . should not receive it. It should be based on some type of equity, and this will save the injured worker money.

I urge your support of the Heckler amendment.



YEAS-120 Adolph Fichter Lynch %bee& Allen Flede Maitland S c h u l ~

* -1 Flick Marbek Sanmel -ng F ~ a n a n Marsico M n i Baka Gamble Madand Smith, B. Barley Ganaaa M e r r ~ Smith. S. H. - Batiista Geisf Michlwie Snyder, D. W. Bimlin Gedsch Miccwsie Stairs B l m Gladeck Miller Steelman B m Godshall Nailor Steil Bunt GW Nickel Stern Bush H a m N ~ c e Stetla h n e Harley O'Donnell Stish Cewlev Haslv Penel Slrittmauer

Clymer Cohea. L Comell Dempsql Dml D m e Durham Egolf

- hiod odd Fajt

~ e c i e r

Hemeasey Herman Henhey Hess Hutchiason Jadlauiec larolin K m e y King Krebs h u b Lawless Lee Leh Lwdanslty

Penit Phillip Piccola Pins Platts Raymond R e k Reinard Robinson Rohrer Rubley Rudy Ryan Sather S a u m n Saylor

SNrla Taylor, E. Z. Tigue Tadinson True Tulli Uliana Vaoce Van Home Vitali Waugh Womiak Wright, D. R. Wright, M. N YandriPevlls zug

Acosta & b k ~ J 0 0 e ~ Belardi B e l f d Bishop Boyss Butkwitz Buxton Callagirone Cappabisnca Cam Cohea, M. Glafella GI- Gnigm Cowell sy curry Daley DeLuca D ~ Y

Dond"cci Evms Foc Gsnsc Giglidti Gordner G ~ i v r Haluska Hugh- Itkin James Jagpbs MW~Y K a i a O'Bdm Kawmic Oliver Kcllw Pcssi Kirkland Pdmca Ku*wich PeMac s c m Pistella hughlio P m b Lederer Richardson Lescovlk R ~ w

R i m Rotats RcchCk Rmney s.ntoni Scrimti st.brk steigbna Suna T@ Taylor, 1. T~OMI Tdlo Trich vm WilliDms w w Yewcic

NOT VOTING4

The question was determined in the affirmative, and the amendment was agreed to.


amended? Mr. HECKLER offered the following amendment No.

A0645:

Amend Sec. 14 (Sec. 401). page 43, line 22, by inserting after "'w All workers'com~ensation iudaes shall devote not less than thirtv- seven and one-half hours per week to their iudicial duties and shall enaage m no other act~vmlv for compensation durma a workwcek 'The workweek for workers'com~ensal~on ~udges shall be eslabl~shed bv reuulat~on


The SPEAKER On the question, the Chair recognizes Mr. Heckler.

Mr. HECKLER. Thank you, Mr. Speaker. One more modest pmposal, if you will. Part of the discussion, although I do not believe it is

contained in this bill at this time, a considerable part of the discussion abut getting our system going, our workers' compensation system, which 1 perceive to be pretty dysfunctional at this point, although there have been efforts made by the Casey administration to impmve it, is part of the proposals have been to hire quite a substantial number of workers' compensation referees in addtion to those who are already employed. Again, information which I have received sugges!s that there is a wide range of levels of activity, levels of busyness or productivity, if you will. on the part of referees

to have outside practices. I am not trying to disturb that. And in fact, the final language I include here says that it is up to On the question recurring,

the deparhnent to define what the workweek is. So if the Will the House agree to the amendment?


depa~tment wants to say you can break from 12 to 2 and you are perfectly welcome to take phone calls or do your private practice or that you can be done at 3:30 in the afternoon, that is fine with me, whatever the department would establish so long as we get 37 ID hours per week of those services.

Now, I call your attention to the fiscal note. It is not oflen that you strike gold in these things, but it sttuck me, at least Mr. Evans and his staff informed me, that the Department of Labor and Industry would have to establish a monitoring system to make sure that this was complied with, and they estimate that would cost $75,000. Now, it is kind of fumy, because I was told when I offered a somewhat similar although less relined amendment in committee that, heck, these folks are already full time. So if they are already full time, evidently nobody is minding the store at this point and maybe we ought to be spending the $75,000 no matter what.

The note also mentions the prospect that this would interfere with the ability to bring on senior judges. That is not my intention. If in fact that would be a byproduct of this amendment, I would suggest that some additional language could be negotiated into whatever the final bill would reflect on that score. But certainly let us not be distracted by that argument, because it is everybody's announced intentioband we are going to deal with it in the budget if we do not deal with it in connection with this bill-to hire a great many more brandnew full-time referees, or judges as they are going to be called now, in addition to any senior judges who might fill in part time.

Again, I think it is a modest proposal to get a dollar's work

across this State. Some work very hard, do work full time, move a great number of cases and dispose of them expeditiously. Others take a long time.

It seemed to me, before we think about hiring more referees, that we should get an honest day's work out of all those we presently have, and my amendment simply requires that all referees- And do not be thrown off by "judges." That is language which is included, I believe, in everybody's version of the bill. They are now going to be called judges, although otherwise their jobs are not changed, so I am simply following the language that is in everybody's versions of the amendments, not reclassifying them myself. I am suggesting that they spend not less than 37 112 hours per week, which I am told is the civil service-approved period of time, and that during the reguiar workweek, they engage in no other activity for pay.

Now, a number of referees are lawyers. They are allowed

for a dollar's pay, and I would h e your approval of the amendment.

The SPEAKER The Chair recognizes the gentleman, Mr. Llovd.

Labor and Industry hires part-time senior judges. Under this language, that would not be permitted.

And, Mr. Speaker. I think there are some other drafting problems and that rather than putting this amendment into the bill and counting on somebody's fixing that later, we ought to

C deal with this Issue as part of the work-load analysis, which the bill directs the Secretary of Labor and Industry to do by the end of this year.

Mr. Speaker, I do not think in the meantime we can afford to do anything which will prohibit or inhibit the department from using part-time judges in order to try to work off the backlog, because, as I know the gentleman agrees, one of the major problems we have in the system is that it takes too long to get a case decided.

So for those reasons, Mr. Speaker, I would urge that we reject this amendment.


-.. - Mr. LLOYD. Mr. Speaker, the gentleman correctly touched

on the problem with this amendment, and that is that in order to try to work off the backlog of cases, the Department of

The follou

Adolph Allen Argsfl '4mtroag Baker Barley Birmehn Boyes B m Bunt Bush Came C-r Chdwick Civera Clark Clymer Cobea. L. I h e l l D ~ = Y Dm DNce Durham Egolf Fairchild Fajt Fargo Farmer

Bebko-Jones Belardi Belfanli Bishop Blaum Butkovitz B u m Caltagimne Cawbiaaca Cam

ring roll call was recorded:

YEAS-I 10 Fichter Lynch Flesgle Maitland Flick Madrmk G a d e Manic0 Gaonon Masland 06s Meny Gnlach Mimaie Gladmk Miller Godshall M ~ d y GW Nailor Hanos Nickol H d e y N yee Hasay O'Briar Heckler P e d Hennew, Patit H m n Phillips Hershey Piesola Hess Pius Hutchima Plat@ Iadlavlec Raymond Kenney Reber King Reinard Krrbr Robinson La& Rohrer Lawlass Rubley k Ry.n Leh Sather Levdaosky

NAYS-92

Evans hn/k Fes Manderioo Freeman Mayrmik George McCall Gigiioni McGeehan Gordner McNally GmiUa Melio Haluska Michlwic Hughes Mihalich ltkin Murphy James O'Donnell Jamlin Oliver

h f i n i Smith. B. Smith. S. H. r, snydsr, D. W. Stairs Steil Stan Stish strinmtter Taylor, E. Z. Taylor, I. Tigue Tomliom T N ~ Tulli Uliana vsnfe Vitali Wauph w G 0 Wright, M. N. zup

Rudy Santoni Ssrimeoti Stabask


CSWIW lacilhs pad ~ d c h 1 occupation is two times the average wage or $50,000, be Petnru Van Horn

K.num'c Pdlor~e V m would give up his right to a benefit under this amendment.

K d l a Pistella William I am requesting that the House adopt this amendmenf Mr.

-W K i r l d d Prestaa Wcmiak Cawell KuLwich Ricbsrdson WdgN D. R I SPEAKER The Chair thanks the gentleman and

r e c o p h s Mr. Godshall. Mr. GODSHALL. Thank you, Mr. Speaker. I would l i to interrogate the maker of the amendmenf

Damody ~ i n t w R-v spesker ~ o n r h ~ ~ ~ i uoyd The SPEAKER The gentleman indicates he will stand for I

NOT VOTING4

EXCUSED-1


On the question recurring, - Will the Hwse agree to the bill on third consideration as amended?

Mr. BUXTON offered the following amendments No. - A0658:

Amend Sec. 10 (Sec. 308.1). page 38, line 26, by striking out "& and inserting

&"k*

Amend Sec. 10 (Sec. 308.1), page 39, line 16, by removing the period after "CONTRACT" and inserting . except for anv amounts paid bv the emplover pursuant to the

[e) In the case of a vrofessioual athlete. the term "wages of the iniured emplove" as used in section 306(b) for the purpose of computing compensation for partial disabilitv shall mean two times the Statewide average weeklv waae. -


The SPEAKER On that question, the Chair recognizes Mr. Buxton.

Mr. BUXTON. Mr. Speaker, the amendment that I am offering today amends a specific section of the bill dealing with professional athletes.

What this amendment seeks to do, Mr. Speaker, is to set the threshold whereby professional athletes qualify for workers'

a compensation under this amendment. The Lloyd amendment provides for six times the average weekly wage, which roughly uanslates into approximately $150,000 a year. My amendment would change that six times to eight times, or roughly $200,000 a year by which a professional athlete would qualify under the provisions of this bill.

Furthermore, the amendment would establish that where a professional athlete receives compensation over the $200,000 a year, that any other type of benefit that the team would pay, such as disability insurance, would offset that benefit of workers' compensation.

Thirdly, Mr. Speaker, the amendment would require that if a professional athlete has a careerending injury in which he seeks his next occupation, that if his weekly wage in that next

interrogation. The gentleman may proceed. Mr. GODSHALL. Thank you, Mr. Speaker. Mr. Speaker, as I understand this amendment, this replaces

the original Mellow-Madigan language in the bill as it came over to the House, the original Mellow-Madigan bill. Is that correct?

Mr. BUXTON. Yes. Mr. GODSHALL. And we are really talking here about

people that are earning in the hundreds of thousad of dollars. That is also correct? That is what we are dealing with with this amendment.

Mr. BUXTON. That is correct. Mr. GODSHALL. Thank you, Mr. Speaker. That finishes my intenogation I would like to make a

statement. The SPEAKER The Chair thanks the mntleman. The -

gentleman is recognized on the amendment. Mr. GODSHALL. I would ask for a favorable vote on this

amendment. This amendment puts back the language as it came over, which was compromise language in the original Mellow-Madigan bill. I would ask for a favorable vote. Thank you.

The SPEAKER The Chair thanks the gentleman and recognizes Representative Preston.

Mr. PRESTON. Thank you, Mr. Speaker. I think that the Buxton amendment is a good amendment,

and I would ask all the members to vote in the affirmative. The SPEAKER The Chair recognizes the gentleman, Mr.

! McNally. Mr. McNALLY. Thank you, Mr. Speaker. I rise in support of the Buxton amendment. To me, I think

one notable argument in favor of this amendment is that by comparison, members of this House do not and are not covered by workers' compensation.

Tlus kind of limitation for professional athletes I think is warranted. I think that you can see some comparison behueen the fact that if members of the legislature are not covered by workers' compensation, we should at least limit workers'

! compensation benefits for professional athletes. They, like us, do not expect to have a career for an extended period of time, unless, of course, your name happens to be Ryan - Nolan or Matt.

So I would ask you to suppotl the Buxton amendment. Thank you.

The SPEAKER. The Chair recognizes the gentleman, Mr. Richardson.

592 LEGISLATIVE

Mr. RICHARDSON. Thank you very much, Mr. Speaker. Mr. Speaker, I rise to oppose this amendment and I do so

for several reasons. One, I think it should be noted that this amendment is no more than the owners' amendment of the football players in the National Football League, and it is an attempt to try to say to us as individuals that if you are a football player and you get injured, you should not be allowed to receive workmen's wmpensation even if you played on the football team for X number of years. What it says is that what we are doing is taking away the right of that particular football player who may get injured during either preseason or during the season and is saying to that individual that the way we will compensate you if your salary is $300,000 a year is that we will mark this against you as credit on your workmen's compensation, not to allow you the opportunity to be able to get full-paid compensation or your salary for your particular work, even though you may have had a contractual amgement that somehow now is voided because you were injured. You are being penalized because you are injured, Mr. Speaker, and it just amazes me that we will go out on a limb for these particular owners who do not want to pay these players in the first place and then use this as the only professional sport where this is being labeled against them. This is not against soccer players; this is not against hockey players; this is not against baseball players; this is not against basketball players, but the football league, the National Football League association.

So I would ask that those individuals who have any understanding, whoever were athletes themselves, an understanding and who may fall in this category of those individuals who do in fact fall in the category of professional football players who get an opportunity to make some money, that now it is going to be taken away if in fact they happen to be injured.

I do not think that this is a right amendment, and, Mr. Speaker, I ask those members on both sides of the aisle to vote against the Buxton amendment.

The SPEAKER. The Chair thanks the gentleman and r e c w z e s Mr. Yandrisevits.

Mr. YANDRISEVITS. Thank you, Mr. Speaker. Mr. Speaker, I rise in support of the Buxton amendment.

The Buxton amendment goes to the heart of what the workers' compensation system is supposed to be about. Workers' compensation is a system that is meant to prevent workers who are injured from losing their financial source of income. Clearly in the case of highly paid professional athletes who have no career expectancy beyond a certain number of years, this is not the case.

The previous speaker mentioned the fact that this applies only to professional football players, which is not accurate. The amendment applies to football players, baseball players, and professional major league sports teams.

Clearly, when an individual is on temporary dsability and ha. the ability to go out and start another career which pays him in excess of $50,000 a year, the workers' compensation system was not meant to cover that type of a situation.


This amendment does not prohibit an injured athlete from collecting his medical expenses. It does not apply in the case of permanent disability; it does not apply in the case of death. All this amendment does is limit collection of workers' compensation in cases where other sources of income, either

C through disability policies or even continuation of salary, are available to that player, or in cases where that player is not able to pursue his career but is still able to obtain employment which pays him in excess of $50,000 a year.

Therefore, I would urge the adoption of the Buxton amendment. Thank you, Mr. Speaker.

The SPEAKER. The gentleman, Mr. Levdansky, is recognized.

Mr. LEVDANSKY. Thank you, Mr. Speaker.

@ Mr. Speaker, I rise to oppose the Buxton amendment.

There are three fundamental reasons why I think we ought to reject this amendment. First and foremost, for the first time it establishes a means test by which we can test a group of employees and determine whether or not they should be eligible for partial disability benefits. That is a dangerous precedent that we are setting in establishing a means test. If we really want to do that, if the issue is people are too highly paid and they ought not be able to collect m a l or permanent disability, then we ought to establish a means test for evelybody, notjust professional athletes. This amendment does not establish a means test for corporate executives, for anomeys, for accountants, for engineers, for sports managers, for coaches of professional teams. It establishes no means test for anybody except for professional athletes. W

The second reason why I think we ought to reject this, and one of the grounds that one of the advocates supporting this amendment enumerated was because, well, these professional athletes are in high-risk occupations and they know that they are going to get hut within 3 or 4 years, and that is what they expect so they should not receive compensation if they get disabled. Well, I point out to you, there are a number of other high-risk occupations in society, that a lot of people take jobs in these lugh-risk occupations because they need employment; such occupations as coal miners. Coal miners enter the coal fields because they need work. They recognize the risks entailed with working underground, and that is a high-risk occupation. Should we continue this principle beyond athletes and extend it to other high-risk occupations like coal miners? How about ironworkers, people who do structural ironwork? Everybody knows that that is a lugh-risk occupation. Nobody is talking about extending this principle to the ironworker occupation as well. How about underwater welders? I have got a personal friend of mine that is a deepwater underwater welder, does high-risk occupation, like welding the intake valves on the Peach Bottom nuclear reactor plant. Re knows that is hgh-risk employment. He expects to be compensated fairly in t e n s of his salary and his wage, and also if he gets hurt, I think it is justifiable for people like that to collect disability employment aswell. Nuclear powerplant employees; tlus list can go on and on. If someone takes a job in a high- risk occupation, that does not exclude them from collecring

C

LEGISLATIVE JOURNAL - HOUSE benefits in any other walk of life, and I do not think we should establish this precedent here as well.

Finally, let me point out that this issue of disability benefits is one that is going to be resolved at the colLective-bargaining table in the upcoming negotiations between the Steelers and the Eagles and all of the major league football teams and the National Football League's Player Association. This is an issue that ought to be resolved between those two respective panies at the collective-bargaining table.

Dent Lawless R e k Wri&t, D. R D o n ~ ~ k c i Lee R e i d Wright, M. N. Drum Leh R o h Yandrisevitr Durham Lesfovitz Rvdy zug ~ a j t ~ p c b Ryan

Awsb Fee Linton SsntMli B e b k ~ l w e s F-n Lloyd Ssheaz Belardi Gaonon h d Sc"mmti Belfnati Georlle Maitlaod Semmel

On the issue of fairness, the fact that this sets a dangerous I B i d i n ~ e r l a f h Mandaino Snyder, D. W. precedent and the fact that this General Assembly ought not put its nose where it does not belong in the collective- BIglning process, I urge defeat of this amendment. Thank

just the National Football League in coverage. To answer some of the earlier questions, it extends also to the National Basketball Association and to professional baseball players. We are not singling out just professional football players with this

Gigliotti McCall Stabsck Blaum Gruitza McGeehaa Steelman Bw Haluska Mihalich Stcrler ~ " t k ~ v i ~ Hennesse~ Miller stish

' The SPEAKER. The gentleman, Mr. Buxtoq is recognized

for the second time. Mr. BUXTON. Mr. Speaker, the bill provides more than

Colain0 Iwephs Richardson Veon Conigao Kaiser Rieger Viuli Cowell Keller Rim Williams Daley Kirklaad Robeas W&ak WY Kukovich Robinron Yewcic

g F Oliver T a n m i Ilkin Paei Thomar

Cawley lames Pelram Tigue coben. M. Jamlin tistella t rich

amendment. ~ g o ~ f Laub ~oebuck

- Secondly, Mr. Speaker, now that the Commonwealth of Lederer Rooney DeWeese. Levdansky Rubley Speaker

Pennsvlvania will mandate workers' comoensation on profesiional athletes, it is unreasonable to believe that this will become an issue at the collective-bargaining table. If we are going to mandate workmen's compensation insurance for professional athletes in Pennsylvani&+ 1 do not believe that this issue will be resolved or will even bewme an issue at the collectivebargaining table, and I would ask for an affirmative vote on this amendment today.

On the question retuning, Will the House agree to the amendments?


YEAS-1 15 Adolph Fargo Markosek Sather Allen Farmer Maisico Saumrao &dl Fichter Masland Saylw Armsf- Flea& Mayemik Schuler Baker Flick McNally Serafrni Barley Gamble Melio Srrdth, B. Ballisto Gkst MRTY Srrdth, S. H. E " Godshall Michlovis Stairs

Goniner Micome Stkghner o m Mundy Stnl

Buxtw H a ~ a Nailor Stem Camne cessar Chadwick Civem Clark Clymer Cohen. L. I

Harley Hassy Heckler Herman Hershey Hutchinson Jadlowis Ka~unic Kenney King Krebs LaCirolta laughlm

Niekol Nyce O'Brien O'hnnell Peml Pdrone Peitit Phillips Ficcola Pitts Plalls Prestston K.lymwwl

Strittmatter Surra Taylor, E. Z Taylor, I. Todinson Trello True Tulli Uliana Vance Van Home Wauph w<,gan

NOT VOTING-l Gladeek

EXCUSED-1

Olssz



amended?

AMENDMENT A0663 RECONSIDERED

The SPEAKER. The Chair recognizes the gentleman, Mr. Ryan, who moves that the vote by which SB 1's amendment No. 663 was defeated on the 30th day of March be reconsidered.

On the question Will the House agree to the motion?

1 The following roll call was recorded:

AGO* Adolph Allen Argall . Armstrong Baker Bad? BattlSio I3ehko-J<nes

Farmer Fee Fichter Fleagle Flick Freeman Gamble Gannon Gast

Lloyd h d Lynch Maitlaod Mandaino Markosek Mamco Masland Mayernik

Santaoi Sather S a m Saylor Sch& Schuler Scrimenti Semmel Serafini


E d d i Ga=-P MdMI Smith, B. Bdf.Mi Oalrh McGcehu, Smith. S H. Binadin Giglidti Mdio s&, D. W. B i h p Glakk men^ SVrback Blaum Oodrhsll Michlaic %ra

Godnor Mieanje GndQa MiMich 0- Miller Hdurkn Hanna

MundV Murphy

H ~ Y Nailor H w Nickol Heckla NF HV O'Bricn H a n v a O'Dmndl Haahey Olivor Hcur PRA Hughcr P s i Hutchinson PecNE. Itkin Pe(mae

hdlavls Pdtit J.mcs Phillips Jwlia Piccola Jorpha Piella Kairar Pitls Karmic FIms KeUn W n

Kmey b y m o d King R C ~ W K i d d d R e i d K&B Richadson homos Kcga hub Rim L.ughlin Robots L ~ W ~ C U Rdirmn L a h e r Roehrk Lee R o k Lch Rmncy LaMviQ Rubley Lsvduuky Rudy Linm R Y ~

NAYS-1

NOT VOTING-3 Kukovicb McNally

EXCUSED-1

steel- Sshna Stdl %em w a Stish Strittmrm Shlrta Sum Tan@ T.ylor, E. 2. Taylor, I. Thnnu Tigue Tomlimn Tdlo Tricb Tme Tulli ulim v- Van Home Venn ViWi waugh Williams wag.n Womink Wright, D. R Wright. M. N Yandriswits Ynvcic Zua

The question was determined in the affirmative, and the motion was agreed to.

On the question recurring, Will the House agree to the amendment? The clerk read the following amendment No. A0663:

Amend Bill, page 1, lines 21 through 24; pages 2 through 122, lines 1 through 30; page 123, lines 1 through 11, by striking out all of said lines on said pages and inserting

Section 1. Section 101 of the act of June 2, 1915 (P.L.736, No.338). known as The Pennsvlvania Workmen's Comnensation Act, rc&acted and amended lube 21,1939 (P.L.520, ~ d . 2 8 1 ) and amended December 5, 1974 (P.L.782, No.263), is amended to read:

Section 101. That this act shall be called and cited as [The Pennsylvania Workmen's] the Workers' Compensation Act, and

shall apply to all injuries occurring within this Commonwealth, irrespective of the place where the contract of hiring was made, renewed, or extended, and extraterritorially as provided by section 305.2.

Section 2. Section 104 of the act. amended March 29.1972 b (P.L.159, No.61), is amended to r e a d

Section 104. The term "employe," as used in this act is declared to be synonymous with servant, and includes-

All natural persons who perform services for another for a valuable consideration. exclusive of nersons whose emnlovment ,- - 1s casual m character A d not m the rdgu~ar course of th<bbusmess of the employer, and exclusive of persons lo whom artlcles or materials are given out to be made up, cleaned, washed, altered, ornamented, fmished or repaired, or adapted for sale in the worker's own home, or on other premises, not under the control or management of the employer. [Every] Except as hereinafter provided in clause (c) of section 302 and sections 305 and 321 of this act, every executive officer of a corporation elected or aanointed in accordance with the charter and bv-laws of the /bVoration, except elected officers of the ~ommoiwealth or any of its political subdivisions, shall he an employe of the corporation lexcept as hereinafter provided in seaions 302 (c), 30i and 3211. executive officer of a cornoratton mav. however. elect not to be an "emplovc" of the corporation for the purposes of thls act For purposes of thls sectlon, an executtve officer is an mdlvldual who has the power to duect and cause the dlrectlon of thc management and ~ollcles of the busmess and to make the dav-to-day as well as malor declsrons m matters of policv. management and o~erations.

Section 3. The act is amended by adding sections to read: Section 105.3. The term "construction deiixn ~rofessional,"

as used in this act, means a professional engineer or land survevor licensed bv the State Registration Board for Professional Engineers and Professional Land Survevors under the act of May 23. 1945 (P.L.913. No.367). known as the Professional Engineers and Professional Land Survevors Registration Law. a landscape architect who is licensed bv the State Board of Landscape Architects under the act of Januaw 24. 1966 (1965 P.L.1527, No.535).known as the Landscape Architects'Registration Law.an architect who is licensed bv the Architects Licensure Board under the act of December 14. 1982 IP.L.1227. No.281). known as the Architects Licensure Law. or anv comoration or association (mcludm~profess~onalcorporat~ons)organnedorre~~steredunder the act of December 21. 1988 (P.L 1444. No.177). known as the General Assoclat~on Act of 1988, practicmg engmsermq, archltecturc, landscape arch~tecture or swvevmg m thls -

Commonwealth. Section 109. In addition to the definitions set forth in this

Article, the following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearlv ~ndlcates otherwise

"8111" means a statement or lnvolce for payment of scrvlces under clause (0 of sectlun 306 of thls act whlch identifies the clamant, the date of m t w . the pavment codes referred to m clause (0 of sectlon 306 of thrs act and a descnptlon of the servtces prov~ded on or m standard form prescribed bv the De~artment of Labor and Industrv.

"Burn facility" means a facility which meets the service standards of the American Burn Association.

"Commissioner" means the Insurance Commissioner of the Commonwealth.

"Coordinated care organization" or "CCO means an organization licensed in Pennsylvania and certified bv the Secretary of Labor and lndustrv on the basis of established criteria possessing the ca~acitv to provide medical services to an iniured

1 1993 LEGISLATIVE JOURNAL - HOUSE 595

Disease Act. - "Pass-throupb costs" means Medicare reimbursed costs to a hospital that "pass throuah" the prospective payment system and are not included in the diagnosis related woup payments. The term includes medical education. capital expenditures. insurance &I interest expense on fixed assets.

"Peer review," for the purpose of undertakine. reviews and reports pursuant to section 420, means review by:

1) an impartial physician or other health care providers seleckd by the Secretarv of Labor and lndustrv upon recommendation of the deans of the medical colleges located in this Commonwealth;

(2) a panel of such professionals and providers selected by the Secretary of Labor and lndustrv upon recommendation of the . deans of the medical colleges located in this Commonwealth or recommendation of professional associations representinn such professionals and providers; or

(3) a Peer Review Or~anization approved bv the . commissioner and selected bv the Secretarv of Labor and Industry. "Professional health service cornoration" means an entity

defined in and subiect to Chapter 63 (relatinn to ~rofessional health services plan corporations) of Title 40 (relatine. to insurance) of the Pennsylvania Consolidated Statutes.

"Provider" means a health care provider. "Referee" means a workers' compensation iudae. as

designated under section 401. "Secretarv" means the Secretarv of Labor and Industry ofthe -- ~~-

a ~ommonwealth. "Trauma center" means a iaclllty accredrted by the

Pennsvlvanra Trauma Svstems l.'oundvtron under the act of Julv 3. 19x5 (P.L.l64,No.451. kuownaithe Emeraencv Mcdlcal Servrccs A,..

"Urgent inlurv" shall be as deimed by the Amerlcan Colleae of Surgeons' trialre guldellnes regardrna use uf trauma centers ior the region where the services are provided.

''Usual and customary charge" means the charge must oitcn made by provrders of sunrlar tramlnr. experlmce and lrcensurc ior a spcc~ftc treatment. accommodation. product or scrvrcr m the geoarapbic area where the treatment, accommodation. oroduct or service is provided.

"Utilization review organizations" shall be those organizations consisting of an impartial vhvsician. suraeon or other health care provider or a panel of such wofessionals and provtders as authorrzed bv the Secretarv of Labor and Industry and publrshed a? a list in the lbrm of a notice in the Ycnnsvl\,ga

Bulletm. for the purpose of reviewmg the reasonableness and necessttv of treatment by a health care provlder vursuant to sectlon 306 f.1 6

Secttdn 4)' iectlon 204 of the act. amended ~ e c e m b e r 5 , ~ ~

1974 (P.L.782, No.263), is amended to ;sad: Section 204. No agreement, composition. or release of

damages made before the date of any injury shall be valid or shall bar a claim for damages resulting therefrom; and any such agreement is declared to be against the public policy of this Commonwealth. The receipt of benefits from any association. society, or fund shall not bar the recovery of damages by action at law, nor the recovery of compensation under article three hereof; and any release executed in consideration of such benefits shall be void: Provided, however, That if the employe receives unemployment compensation benefits, such amount or amounts so received shall be credited as against the amount of the award made under the provisions of [section 108.1 sections 108 and 306, except for benefits payable under section 3061~).

Section 5. Section 301(a) and (c)(l) of the act, amended October 17, 1972 (P.L.930, No.223) and December 5, 1974 (P.L.782, No.263), are amended to read:

Section 301. (a) Every employer shall be liable for compensation for personal injury to, or for the death of each employe, by an injury in the course of his employment, and such compensation shall be paid in all cases by the employer, without regard to negligence, according to the schedule contained in sections three hundred and six and three hundred and seven of this article: Provided, That no compensation shall be paid when the injury or death is intentionally self inflicted, or is caused by the employe's violation of law, includinn. but not limited to, the illegal use of drugs. but the burden of proof of such fact shall be upon the employer, and no compensation shall be paid if, during hostile attacks on the United States, injury or death of employes results solely from military activities of the armed forces of the United States or from militarv activities or enemy sabotage of a ~- - ~ ~

fore~gn power. In cases wheie the m l w or deaih IS caused by intoxrcatlon. no compensattoo shall be paid if the ~ n i w or death would not have occurred but for the employeP mtoxlcation, but the burden of proof of such fact shall be upon the employer. . . .

(c) (1) The terms "injury" and "personal injury," as used in this act, shall be construed to mean an injury to an employe, regardless of his previous physical condition, arising in the course of his employment and related thereto, and such disease or infection as naturally results from the injury or is aggravated, reactivated or accelerated by the injury; and wherever death is mentioned as a cause for compensation under this act, it shall mean only death resulting from such injury and its resultant effects, and occurring within three hundred weeks after the injury. The term "injury arising in the course of his employment," as used in this article, shall not include an injury caused by an act of a third person intended to injure the employe because of reasons personal to him, and not directed against him as an employe or because of his employment; nor shall it include iniuries sustained while the employe is operating a motor vehicle provided bv the employer if the employe is not otherwise in the course of employment at the time of iniurv; but shall include all other injuries sustained while the employe is actually engaged in the furtherance of the business or affairs of the employer, whether upon the employer's premises or elsewhere, and shall include all injuries caused by the condition of the premises or by the operation of the employer's business or affairs thereon, sustained bv the emolove. who. though not so engaged, is injured upon the . . . p;emises occupied b; or under the co%ol of the employer, or upon which the employer's business or affairs are being carried on. the emplove's presence thereon being required by the nature . . . . . of his employment. . * *

Sectiou 6. Section 302 of the act, amended December 5, 1974 (P.L.782, No.263), is amended to read:

Sectiou 302. (a) A contractor who subcontracts all or any part of a contract and his insurer shall be liable for the of compensation to the employes of the subcontractor unless the

596 LEGISLATIVE J( JRNAL - HOUSE MARCH 30

subcontractor primarily liable for the payment of such compensation has secured its payment as provided for in this act. Any contractor or his insurer who shall become liable hereunder for such compensation may recover the amount thereof paid and any necessary expenses from the subcontractor primarily liable therefor.

For purposes of this subsection, a person who contracts with another (I) to have work performed consisting of (i) the removal, excavation or drilling of soil, rock or minerals, or (ii) the cutting or removal of timber from lands, or (2) to have work performed of a kind which is a regular or recurrent part of the business, occupation, profession or trade of such person shall be deemed a contractor. and such other oerson a subcontractor. This subsection - . - shall not apply. however, to an owner or lessee of land prmclpally used for agrlculnue who 1s not a covered employer under thls act and who contracts for the removal of timber from such land.

(b1 Anv emnlover who nermits the entrv uoon oremises . . . occu&ed by him o; &der hls cbntro~ of a laborer or an assistant hued by an employe or contractor. for the performance upon such premises of a part of such employer's regular business entrusted to that emolove or contractor. shall be liable for the navment of . , . . compensatlon to such laburer or asststant unless such hulng employe or contractor. if prunar~ly liable for thc payment of such compensatlon, has secured the payment thereof as pruvided for m thisact. Any employer or his insurer who shall become liable hereunder for such compensation may recover the amount thereof paid and any necessary expenses from another person if the latter is primarily liable therefor.

For purposes of this subsection (b), the term "contractor" shall have the meaninn ascribed in section 105 of this act. ~ -~

(c) Any employ& employing persons in agricultural labor shall be required to provide workmen's compensation coverage for such employes according to the provisions of this act, if such emolover is otherwise covered bv the orovisions of this act or if du&g the calendar year such.empfoyer pays wages to one employe for agriculNra1 labor totaling one hundred fifty dollars ($150) or more or furnishes employment to one employe in agricultural labor on twenty or more days in any of which events the employer shall be required to provide coverage for all .mntnver --r. -,--

(d) A contractor shall not subcontract all or any part of a contract unless the subcontractor has oresenred proof of msuraoce under this act.

(e) (1) Prior to issuing a building permit to a contractor, a munlc~~alltv shall requue the contractor to present proof uf workers'compensatlon Insurance fur the duratlon of the wurk or an affidavit that the contractor is the sole oroprletor, orlncl~al shareholder of a cornoration or a partner in a partnership which - --

does not e m ~ l o v other individuals to perform the work pursuant to the buildine permit.

2) Every building permit issued bv a municbalitv to a contrictor shall clearlv set forth the name and workers'

~-

in the event his workers' comnensation insurance or self-insured

status is cancelled. If the munici~alitv determines that a sole proprietor, parmer or shareholder who is perform in^ work - -- -

purwant to a bulldma ~e rml t does not mamtam resuued workers' compensatlon msurance. the munlclpaLW may Issue a S~OD-work order Thls order shall remam m effect untrl Drover workers' C compensation coverage is obtained for all work performed

ixempted pursuant to section 304.2 of this act. Section 7. Section 305 of the act, amended December 5,

1974 lP.I..782. No.2631 and revealed in oar1 Anril 28. 1978 \ - ~ ~~

i ~ . ~ : 2 0 2 , No.53), is aminded to iead: Section 305. Every employer liable under this act

to oav comoensation shall insure the payment of compensation in th; State .workmen's Insurance &id. or in an; insurance company, or mutual association or company, authoriied to insure d such liability in this Commonwealth, unless such employer shall be exempted by the department from such insurance. Such insurer shall assume the employer's liability hereunder and shall be entitled to all of the employer's immunities and protection hereunder except, that whenever any employer shall have purchased insurance to provide benefits under this act to persons engaged in domestic service, neither the employer nor the insurer may invoke the provisions of section 321 as a defense. An employer desiring to be exempt from insuring the whole or any part of his liability for compensation shall make application to the department, showing his financial ability to pay such compensation, whereupon the department, if satisfied of the applicant's financial ability, shall, upon the payment of a fee of [one hundred dollars (S100.00)] five hundred dollars ($5001, issue to the applicant a permit authorizing such exemption.

(2) In securing the payment of benefits, the deoartment shall require an employer wishing to self-insure its liabilitv to establish sufficient security by posting a bond or other security, including letters of credit drawn on commercial banks with a Thomson Bank Watch rating of B or better or a CD rating of BBBIAZ or better by Standard and Poor's. This paragraph shall not apply to municipalities.

(3) The de~artment shall establish a oeriod of twelve (12) - calendar months,io begin and end at such t&es as the department shall prescribe, which shall be known as the amual exemption period. Unless previously revoked, all permits issued under this section shall expire and terminate on the last day of the annual exemption period for which they were issued. Permits issued under this act shall be renewed upon the filing of an application, and the payment of a renewal fee of one hundred dollars ($100.00). The department may, from time to tune, require further statements of the financial ability of such employer, and, if at any time such employer appear no longer able to pay compensation, shall revoke its permit grantlng exemption, in which case the employer shall immediately subscribe to the State Workmen's

C

LEGISLATIVE JO URNAL - HOUSE

Insurance Fund. or insure his liabilitv in anv insurance comnanv I . ~

or mutual association or company, as aforesaid. @J Any employer who fails to comply with the provisions

for every such failure, shall, upon lsummary - conviction before anv official of comDetent iwisdiction. be I sentenced to nav a f k e of not less thah five hundred dollars I ($500) nor mdr&han two thousand dollars (12.00U). and costs of prosecut~on, or unpnsonment for a perlod ol' not more than one I

rompensatton Thc amounl of restttutton shall he ltmtted to that gectfted m the award ofcomneosautrn I t shall be the dury oftbe department to enforce tbe nrovtsions of thts secttan. and it shall I in;estigate all violations tiat are brought to its notice and shall institute prosecutions for violations thereof. All fines recovered under the provisions of this section shall be paid to the department, and by it paid into the State Treasury.

(cJ In any proceeding against an employer under this section, a certificate of non-insurance issued by the official . Workmen's Compensation Rating and Inspection Bureau and a certificate of the department showing that the defendant has not been exempted from obtaining insurance under this section, shall be prima facie evidence of the facts therein stated. - @J When any employer fails to secure the payment of compensation under this act as provided in sections 305 and 305.2, the injured employe or his dependents may proceed either under this act or in a suit for damages at law as provided by article 11 -. . .- . - . .

I Fvrw employer shall post a notar at its Drimaw place uf busmess and at its sltes of r.molovmcnt m a momment and eas~lv access~ble place. mcludmg. wtthoul Ilm~tation, areas used for the treatment of tnlureJ employes or for the admm~,trauon of f rs t aid. containing:

( I ) Either the name of the emplover's carrier and the address and telephone number of such carrier or insurer or. if the employer is self-insured, the name, address and telenhone number of the person to whom clams or requests for information are to be addressed.

f2) The following statement: "Remember. it is im~ortaut to tell your em~lover about your iniury." The notice shall be ~ o s t e d in prominent and easily accessible places at the site of emplovment, including such places as are used for treatment and first aid of iniured em~loves. Such a listing shall contain the information as s~ecified in this section, typed or printed on eight and one-half inch bv eleven inch or eight and one-half inch bv thirteen inch paper in standard size type or

Section 8. Section 306(a) and ( f ) of the act, amended December 5, 1974 (P.L.782, No.263) and July 1, 1978 (P.L.692, No.119), are amended and the section is amended by adding clauses to read:

Section 306. The following schedule of compensation is hereby established

(a) For total disability, sixty-six and two-thirds per centum of the wages of the iniured emnlove as defined in section three - . , hundred and nine beginning after the seventh day of total disability, and payable for the duration of total disability, but the compensation shall not be more than the maxlmum compensatlon payable [nor less than fifty per centum of tine Statewide average weekly wage. If at the tlme of injury, the employe receives wages

-m equal to or less than fifty per centum of the Statewide average weekly wage, then he shall receive ntnety per centum of his average weekly wage as compensatlon, but m no event less than thirty-three and one-third per centum of the lnaxlmum weekly compensation payable) as defined tn section 105.2. Nothtng in this clause shall requlre payment of compensatlon after disabtltty shall cease. If the benefit so calculated is less than fifty aer centum of

the Statew~de average weekly wage, then the benefit aavable shall be the lower of fifty per cenhlm of the Starewtde averane weekly wage or eighty-five ncr cenrum of the worker's average weekly ~~ ~

* . [(f) (1) .The employer shall provide payment for reasonable

surgical and medical services, services rendered by duly licensed practitioners of the healing arts, medicines, and supplies, as and when needed: Provided, That if a list of at least five designated physicians or other duly licensed practitioners of the healing ans or a combination thereof is nrovided bv the emnlover. the ~ ~ -~ . . . employe shall be required to vikt one of tde physicians or other practitioners so designated and shall continue to visit the same or inother physician or practitioner for a period of fourteen days from the date of the fust visit. Subsequent treatment may be provided by any physician or any other duly licensed practitioner of the healing arts or a combination thereof, of the employes own choice, and such treatment shall be paid far by the employer. Any employe who next following the termination of the fourteen-day period is provided treatment from a physician or other duly licensed practitioner of the healimg arts who is not one of the physicians or practitioners designated by the employer, shall notify the employer within five days of the first visit to said physician or practitioner. However, if the employe fails to so notify the employer, the employe shall suffer no loss of rights or benefits to which he is otherwise entitled under the act.

(2) If and only if the employer has designated at least five nhvsicians or other dulv licensed ~ractitioners of the healing arts or combinatton theredfas permrfled by the preceding para(lraph, the iollowmg reporumg provlstons shall apply. Nothmg in the followmp paragraphs shall el~mmatc rlghts of the employer to obtain all records and data as permined under any other sections of this act.

(i) The physician or other duly licensed practitioner of the healing arts shall be required to file periodic reports with the employer on a form prescribed by the department which shall include, where pertinent, history, diagnosis, treatment, prognosis and physical fmdings. The report shall he filed within hventy-one days of commencing treatment and at least once a month thereafter, as long as treatment continues. The employer shall not be liable to pay for such treatment until a report has been filed.

(ii) The employer shall have the right to petition the department for review of the necessity or frequency of treatment or reasonableness of fees for services provided by a physician or other dulv licensed nractitioner of the healing arts. Such a ~eti t ion shall m no etent acias a rupersedcas. and during [he pendency of an) such peullon the employer shall pay all medical bills if the physician or other practitioner of the healing arts files a report or reports as required by subparagraph (i) of paragraph (2) of this subsection.

(3) After an employe has elected to be treated by a physician or other duly licensed practitioner of the healing arts who is not one of the physicians or practitioners designated by the employer, he may thereafter elect to be treated by another physician or other duly licensed practitioner of the healing arts upon notice to his employer: Provided, however, That no such notice shall be required in emergencies, or in cases of referrals by one physician or practitioner to another physician or practitioner or if the new physician or practitioner makes a timely report to the employer within twenty-one days after commencing treatment.

14) In addition to the above service. the emnlover shall . , pro\~.lc paynlcnt for medlc~nes and suppl~es, husp~tal trealment. \er\r.es and auppltea and orthopedtc appliances, and prostheses Ihe co<t iur such hosp~tal treatment, servlce and suppltes shall not in any case exceed the prevailing charge in the hospital for like services to other individuals. If the employe shall refuse reasonable services of duly licensed practitioners of the healing arts, surgical, medical and hospital services, treatment, medicines and suppltes, he shall forfeit all rights to compensation for any iniury or any increase in his incapacity shown to have resulted from such refusal. Whenever an employe shall have suffered the loss of a ltmb. part af a limb, or an eye, the employer shall also prov~de payment for an arttficial limb or eye or other prostheses



tollowmg: i) Each application for certification shall be accom~anied

by a !easonable fee res scribed bv the department. A certificate is valid for such period as the deparment may prescribe unless sooner revokedor suspended.

(ii) Application for certification shall be made in such form and manner as the department shall require and shall set forth information regarding the proposed plan for providing services.

(21 The coordinated care oraanization shall include an adequate number and specialty distribution of licensed health care roviders in order to assure appro~riate and timely deliverv of

:emices required under the act and an appropriate flexibilitv to workers in selecting providers. Services may be provided directly, throuah affiliates or through contractual referral arrangements with other health care providers.

(3) The secretarv shall certify an entity as a coordinated care organization if the secretary fmda that the entltv:

[i) Possesses the capac~tv to provide all primary medical services as desianated by the secretary in a manner that is tunelv and effective.

[ii) Maintains a referral capacitv to treat other iniuries and illnesses not covered by primary services but which are covered

uation sVStem from onset of

which relates the employe,

by this act. Jiii) Provides a case manaaement and eval

which includes continuous monitorine of treatment iniury or illness until final resolution.

[iv) Provides a case communication system necessary and appropriate information among em~loyer, health care pII ' ' ~ ' '

jv) Provides arruro care dispute resolution system.

(vi) Complies with anv other requirements of law resardine. deliverv of medical care services.

vii) Establishes a written grievance procedure for prompt and eifective resolution of patient arievances.

wluers ana mburer prlate peer and utd~zat~on revlew and a


(4 ) The secretary shall refuse to certlfv or may revoke or susvend certificat~on of anv coordrnated care oraanrratron I T the

Section 9. Section 307 of the act, amended December 5, 1974 (P.L.782, No.263). is amended to read:

Section 307. In case of death. comoensation shall be computed on the following bas~s. and d~stribuied to the follow~ng persons. I'n,v~ded. That m no case shall the wagcs of the deceased be taken to be less than fifty per centum of the Statew~dc average weekly wage for purposesof this section:

1. If there be no widow nor widower entitled to compensation, compensation shall be paid to the gnatdian of the child or children, or, if there be no guardian, to such other persons as may be designated by the board as hereinafter provided as follows: ~ ~ . - ~

(a) If there be one ch~ld. th~rty-two per centuni of wages uf deceased. but no1 in excess of the Statewide average weekly wage

(bl I t there be two children, fortv-two per centum of wages of deceased, but not in excess of the-Statewide average weekly wace~

--

at thetime of the injury, the compensation payable to such father or mother shall be fifty-two per centum of wages, hut not in excess of the Statewide average weekly wage.

6. If there be neither widow, widower, children, nor dependent parent, entitled to compensation, then to the brothers and sisters, if actually dependent upon the decedent for support at the time of his death, twenty-two per centum of wages for one

C brother or sister, and five per centum additional for each additional brother or sister, with a maximum of thirty-two per centum of waEes of deceased. but not in excess of the Statewide - average wage, such compensation to be p a d to then guardlan, or ~f there be no guardran, to such other person as may be destgnated by the board, as hereinafter provided.

7. Whether or not there be dependents as aforesaid, the reasonable expense of burial, not exceeding [one thousand five hundred dollars] three thousand dollars ($3,0001, which shall be paid by the employer or insurer directly to the undertaker (without deduction of any amounts theretofore paid for compensation or for medical expenses).

Compensation shall be payable nnder this section to or on account of any child, brother, or sister, only if and while such child, brother, or sister, is under the age of eighteen unless such child, brother or sister is dependent because of disability when compensation shall continue or be paid during such disability of a child, brother or sister over eighteen years of age or unless such child is enrolled as a full-time student in any accredited educational institution when compensation shall continue until such student becomes twenty-three. No compensation shall be payable under this section to a widow, unless she was living with her deceased husband at the time of his death, or was then actually dependent npon him and receiving from him a substantial portion of her support. No compensation shall be payable under this section to a widower, unless he be incapable of self-support at the time of his wife's death and he at such time dependent upon her for support. If members of decedent's household at the time of his death, the terms "child" and "children" shall include step- children, adopted children and children to whom he stood in loco * parentis, and children of the deceased and shall include posthumous children. Should any dependent of a deceased employe die or remarry, or should the widower become capable of self-suaoort. the richt of such deoendent or widower to .---. ,. . -

(c) If there be three children, fifty-two per centum of wages under thrs section shall cease except that if a widow of deceased, but not m excess of the Statrw~de average weekl) shallrecr~ve one hundred four weeks compensation

., (d) If there be four children, sixty-two per cenNm of wages

of deceased, but not in excess of the Statewide average weekly I wage.

(e) If there he five children, sixty-four per centum of wages of deceased, but not in excess of the Statewide average weekly wage.

( f ) If there be six or more children, sixty-six and two-thirds per cenhlm of wages of deceased, but not in excess of the Statewide average weekly wage.

2. To the widow or widower, if there be no children, fifty- one per centum of wages, but not in excess of the Statewide average weekly wage.



4 112. To the widow or widower, if there be three or more children, sixty-six and two thirds per centum of wages, but not in excess of the Statewide average weekly wage.

5 . If there be neither widow, widower, nor children entitled to compensation, then to the father or mother, if dependent to any extent upon the employe at the time of the injury, thirty-two per centum of wages but not in excess of the Statewide average weekly wage: Provided, however, That in the case of a minor child who has been contributing to his parents, the dependency of said parents shall be presumed: And provided further, That if the father or mother was totally dependent npon the deceased employe

at a rate computed in accordance with clause 2. of section 307 in a luma sum after which comoensation shall cease: Provided. however[ hat-if, upon invesiigation and hearing, it shall be ascertained that the widow or widower is living with a man or woman, as the case may be, in meretricious relationship and not married, or the widow living a life of prostitution, the board may order the termination of compensation payable to such widow or widower. If the compensation payable under this section to any person shall, for any cause, cease, the compensation to the remaining persons entitled thereunder shall thereafter be the same as would have been payable to them had they been the only persons entitled to compensatlon at the time of the death of the deceased.

The board may, if the best interest of a child or children shall so reouire. at anv time order and direct the com~ensation • -~ ~~ . ~. payable to a child or children, or to a widow or widower on account of any child or children, to be paid to the guardian of such child or children, or, if there be noguardian, to such other person as the board as hereinafter provided may direct. If there be . no guardian or committee of any minor, dependent, or insane employe, or dependent, on whose account compensation is payable, the amount payable on account of such minor, dependent, or insane employe, or dependent may be paid to any surviving parent, or such other person as the board may order and direct, and the board may require any person, other than a guardian or committee, to whom it has directed compensation for a minor, dependent, or msane employe, or dependent to be paid, to render, as and when it shall so order, accounts of the receipts and disbursements of such person, and to file with it a satisfactory

C

1993 LEGISLATIVE JOURNAL - HOUSE 601 -- -

bond in a sum sufficient to secure the proper application of the moneys received by such person.

Section 10. The act is amended by adding a section to read: Section 308.1. fa) The eligibilitv of professional athletes

for compensation under this act shall be limited as provided in this section.

(b) The term "professional athlete," as used in this section,

agreement (2) Pavmeots under a self-tnsurance, wage conunualtun,

dtsabtltts msurance or sunalar plan funded by the em~lover. (3) lnlurv protecttan or other tnlurs benefits pavablr bs the

emplover under a contract for hue or collective bargaining agreement

(dl In the case o i a prufesctonal athlete, the temt "waucs of the tn~ured em~iove" as used in sectton 3061b) for the Dumose of computing compensation for partial disabilitv shall mean two . times the Statewide average weeklv wage.

Section l l . Sect i~n 314 of the act. amended February 28. 1956 11955 P.L.1120. No.356). is amended to read:

~ ,. section 314.-d At any time after an injury the employe,

if so requested by his employer, must submit himself for examinatl;on, at some reasonable time and place, to a physician or physicians legally authorized to practice under the laws of such place, who shall be selected and paid by the employer. If the employe shall refuse upon the request of the employer, to submit to the examination by the physician or physicians selected by the employer, [the board] a riieiee asstgned by the deparrmenl may. upon pettttun of the employer, order the employe to submtt to an exammatlon at a ttme and place set by [tt] the rcteree. and by the physician or physicians seiected and paid by the employer, or by a ohvsician or ohvsicians designated bv lit1 the referee and paid . . . b; t ie employer. ' h e [board] ;eferee may at any time after iuch frst examination, upon petition of the employer, order the employe to submit hhsel f io such further examinations as [it] the

shall deem reasonable and necessary, at such ttmes and places and by such phy.ractans as (111 the referce ma) d<s~gnate. and m such case, the employer shall pay the fees and expenses .,f the examining physician o r physicians, and the reasonable traveling expenses and loss of wages incurred by the employe in order to submit himself to such examination. The refusal or neglect, without reasonable cause or excuse, of the employe to submit to such examination ordered by the [board] m, either before or after an agreement or award, shall deprive him of the right to compensation, under this article, during the continuance of such refusal or neglect, and the period of such neglect or refusal shall be deducted from the period during which compensation would otherwise be payable.

The employe shall be entitled to have a physician or physicians of his own selection, to be paid by him, participate in any examination requested by his employer or ordered by the [board] referee.

Section 12. Section 321 of the act, added March 29, 1972 (P.L.159, No.61). is amended to read:

Section 321. [Nothing contained in this act shall apply to or in any way affect any person who at the time of injury is engaged in domestic service: Provided, however, That in cases where the employer of any such person shall have, prior to such injury, by application to the Workmen's Compensation Board, approved by the board, elected to come within the provtsions of the act, such

exemption shall not apply.] Nothing contained in this act shall apply to or in anv wav affect:

I Anv person who at the time of iniurv is engaged in domestic service: Provided, however. That in cases where the employer of any such person shall have, prior to such iniurv. by a plication to the department. and approved bv the department. 3ected to come within the provisions of the act. such exemption shall not a p ~ h .

contractor for State tax DWDOSeS under the act of March 4. 1971 1P 1 6, No 21, known as the "Tax Reform Code of 1971 "

Se~tron 13 The act 1% amended bv addma sections to read - Sectron 322. I t shall be unlawful for anv emolove lo recelvc

cornpensatloo under thts act and at the same ttme recetve workers' c G e n s a i o n under the laws uf the 1:ederal Government or any other state for the same ~ I W . Further. 11 shall be unlawful ior an emplove to receive cornpensatton under thts act s~mulraneously from two or more emplovers or msurers durlog anv per~od of total disabil~w. Noding in this section shall be deemed to prohibit pavment 01 worke r s ' compensa t ton~ proTata basts, where an emplove cufferr from more than one m l w whtle m the employ of more than one employer Provtded. however. That the total compensation paid shall not exceed maximum limits. -- -

Sectjon 313 (a) A conslruct6n devnn professtonal whu IS

retatneJ to perform profesctonal servtces ona constructton Drolect. o r anv empluve of a construction destgn prolerstonal who IS

assisting or representing the construction desim ~rofessional in --

the p e r l o ~ m a n ~ e ~ o t ~rofesslonal servtces on the stte 01 the construction Drolect. shall not be ltable under thts act for any mlur, or death of a worker not an cmolove of such dcstm prufesstonal on the constructton Drolect for whtch workers' compensation is payable under the provisions of this act.

(b) . The . .. lmmunitv from liabilihi provided by the above . .- subsCCtlOn Shall no1 aDDlV 11

, I ) the tnlury or death is caused bv the nenltgent preparatton of destgn plans ur cpectftcattons bv the constructton -~ p~ - ~~

design professional; (2) the construction desim professional assumes

responsibilitv for safety practices at the construction proiect by written contract: or

(3) the construction design professional actuallv exercises control over the oortion of the construction site where the worker is injured or killed.

(c) Notwithstanding anv provisions to the contrarv, this sectt,,n s h x a p p l y t u clstms tur compensallon based on lnlurtes o r death whlch nccuned aflcr the effecttve date of lhts sectlon

Seut~on 14 Sect~uns 401 ftrst oarauanh and 402 oithe act. ~~~

amended February 8,1972 ( ~ . ~ . 2 5 , ko.l>),'are amended to read: Section 401. The term "referee," when used in this [article]

act, shall mean [Workmen's Compensation Referee] a Workers' - Compensation Judge of the Department of Labor and industry, appointed by and subject to the general supervision of the Secretary of Labor and Industry for the purpose of conducting departmental hearings under this act. The secretary may establish different classes of [referees.] these iudges. Any reference in any statute a workmeni compensatro~ referee shall be deemed to be 3 reference 10 a workers' compensation ~udpe ...

Section 402. All proceedings before any referee- those for which an informal conference has been applied for as provided by section 402.1 of this act. shall be instituted by claim oetition or other oetition as the case mav be or on the hepartmeut's own Lotion, and all appeals to &e hoard, shall be instituted by appeal addressed to the board. All claim petitions, requests fo; informal conferences and other petitions and appeals shall be in writine and in the form prescribed bv the deoartment. -~~ ~

section 15.-The act is amendld by addinga sectioh to read: Section 402.1. fa) In any action for which a petition has

been filed under this act or in any claim for compensation under section 4061, 410 or 411 of this act or where the rixht to


SeCIIon' ( I ) the referee mav accept the statements of both partles,

.ogether wtth anv medtcal reports. wttnesses' statements or other documents which the parties would like to present: ---

[II) all communtcattons, verbal or written, from the parttes to the referee and any mformat~on and evtdence presented to the referee d u m a the proceedmas shall be contident~al, and

liii) each parhi may he represented. but the employer may only be represented by an attorney at the informal conference if the employe is also represented by an attorney at the informal conterence.

(c) The referee shalt attempt to resolve the issues in dispute

agreement. the referee shall reduce such agreement to writing,

between the parties. but in no event shall anv recommendattons or flnd~ngs made by the referee be b~nd~nn upon the ~a t t t e s unless

whtch shall be staned bv all parttes and ftled w~th the department Unless the partles tomtlv agree to a tune extension. all proceedmws wtthm an lnformal conference shall be completed w~thm thlrtv-five days of the tilme of the request for an mformal

LIVI Pavment ot temporary com~ensatton shall be constdered comvensatlon fur purpuses of tollmw the statute of lun~tatrons

conference. Jomt agreement to a tune extension shall_stax the

accepted m wrltmg by both parttes If the partles come to I under sectlon 315 of th~s act

~~ - ~ ~ ~~- ~ ~

proceedings for the tune agreed uoon. Id) In the event that the parties cannot resolve theu dtspute,

the matter remamma m dlspure shall be ass~gned to a referee for a hearing pursuant to section 414 of this act.

to testlfy about any maner discussed or revealed durmg such proceedlngs m anv other proceedma pursuant to thls act, except matters mvolvmw fraud. or shall be permttted lo prestde at any subsequent proceedings on the claim.

Section 16. Section 406.1 of the act is amended by adding a clause to read:

- S~ction 406.1. (d) (1) In anv instance where an employer is uncertain

( 6 ) If the employer does not file a notice under paragraph IS) of clause (dl of this section within the six-week period during which temporam compensation is paid or payable. the employer shall be deemed to have admitted liability and the notice of temvorarv com~ensation payable shall be converted to a notice of compensation payable.

Section 17. Section 420 of the act, amended February 8, 1972 (P.L.25, No.LZ), is amended to read:

Section 420. & The board, the department or a referee, if it or he deem it necessary, may, of its or his own motion, eitber before, during, or after any hearing, make or cause to he made an investigation of the facts set forth in the petition or answer or facts pertinent in any injury under this act. The board, department or referee may appoint one or more impartial physicians or surgeons to examine the injuries of the plaintiff and report thereon, or may employ the services of such other experts as shall appear necessary to ascertain the facts. The referee when necessarv or amropriate or upon request of a partv in order to rule on requests for review filed under clause (f.1) of section 306 of this act. or under other provisions of this act. may ask for an opinion from peer review about the necessity or freauencv of treatment under clause (f.1) of section 306 of t h h apt The nee?

. - . - . .- - - - - - - - as prescribed by the department. I and open to mspectton as such. The referee sh-11 ----.A-- th-

w h e t h e r p e n s a b l e under this act or is uncertain of ---

review report or the veer report of any physician, surgeon, or

compensation payable, send a notice to the claimant informing the claimant that:

(2) The notice of temporary com~ensation payable shall be sent to the claimant and a couv filed with the department and shall notify the claimant that the payment of ternnoraw compensation is not an admission of liability of the employer with respect to the

~ ~

(ii) the payment of temporary comoensation e z t l e s tbe claimant to a maximum of six weeks of compensation: and . . .

(- a timely fashion under section 315 of this act, enter into an agreement with

employer to ensure continuation of com~ensation payments. (3) Payments of temporary compensation shall commence,

and the notice of temporary compensation payable shall be sent witbin the time set forth in clause (a) of this section.

( 4 ) t i u u e uutil such time as the emplover decides to controvert the claim or six weeks from the date the emnloyer has notice or knowledge of the employe's disability. whichever shall first OCCVI.

the extent of its liability under this act. the em~lover may initiate com~ensation pavments without preiudice and without admitting liability pursuant to a notice of temporary compensation payable -".. .,"""..."> --

reporias evidence but shall not be bound by such report. The board or referee, as the case may be, shall fix the

compensation of suchphysicians, surgeons, and experts,- peer revtew organizations which, when so fixed, shall be paid out of the sum appropriated to the Department of Labor and Industry for such purpose.

Section 18. Section 422 of the act, amended February 8, 1972 (P.L.25, No.12) and March 29, 1972 (P.L.159, No.61). is amended to read:

expert appointed by the department or by a referee, including the renort of a veer review organization, shall be filed with the board or referee, as the case may be, and shall be a pwt nf the record

Section 422. & Neither the board nor any of its members nor any referee shall be bound by the common law or statutory rules of evidence in conducting any hearing or investigation, but all findings of fact shall be based upon sufficient competent evidence to justify same. All parties to an adiudicatory proceeding are entitled to a reasoned decision, containing findings of fact and conclusions of law based upon the whole record which clearly and concisely state and explain the rationale for the decision so that all can determine why and how a articular result was reached. The adiudicator shall specify the evidence upon which the adiudicator relies in conformity with this section. The adjudication shall provide the basis for meaningful appellate review.

If any party or witness resides outside of the Commonwealth, or through illness or other cause is unable to testify before the board or a referee, his or her testimony or deposition may be taken, wlthin or without this Commonwealth,


in such manner and in such form as the department may, by special order or general rule, prescribe. The records kept by a hospital of the medical or surgical treatment given to an employe in such hospital shall be admissible as evidence of the medical and surgical matters stated therein.

Where any claim for compensation at issue before a referee [involves twenty-five weeks or less of disability], either the employe or the employer may submit a certificate by any qualified physician as to the history, examination, treatment, diagnosis and cause of the condition, and sworn reports by other witnesses as to any other facts and such statements shall be admissible as evidence of medical and surgical or other matters therein stated and fmdings of fact may be based upon such certificates or such reports[.]: Provided, That, any party shall be allowed the opportunity to take a deposition for Duruoses of cross- examination. upon the tendering to the party offering said report reasonable expenses. including the fee for such deposition: And further provided. That the use of a deposition shall not preclude introduction of a medical report. Should a dispute arise as to the reasonableness of the amounts demanded or tendered, the referee hearinp. the petition shall issue an order relating to the assessment M

@ Where an employer shall have furnished surgical and medical services or hospitalization in accordance with the provisions of [subsection (0 of] section 3 0 6 m , or where the employe has himself procured them, the employer or employe shall, upon request, in any pending proceeding, be furnished with, or have made available, a true and complete record of the medical and surgical services and hospital treatment, including X rays, - laboratory tests, and all other medical and surgical data in the possession or under the control of the party requested to furnish or make available such data.

@ The department may adopt rules and regulations governing the conduct of all hearings held pursuant to any provisions of this act, and hearings shall be conducted in accordance therewith, and in such manner as best to ascertain the substantial rights of the parties.

Section 19. Sections 438 and 440 of the act, added February 8, 1972 (P.L.25, No.lZ), are amended to read:

Section 438. @J An employer shall report all injuries received by employes in the course of or resulting from their employment immediately to the employer's insurer. If the . employer is self-insured such injuries shall be reported to the person responsible for management of the employerS compensation program.

& An employer shall report such injuries to the Department of Labor and Industry by filing directly with the department on the form it prescribes a report of injury within forty-eight hours for every injury resulting in death, and within [three] seven days after the date of injury for all other injuries except those resulting in disability continuing less than the day, shift, or turn in which the injury was received. A copy of this report to the department shall be mailed to the employer's insurer forthwith.

@ Reports of injuries filed with the department under this section shall not be evidence against the employer or the employer's insurer in any proceeding either under this act or otherwise. Such reports may be made available by the department to other State or Federal agencies for study or informational purposes.

Section 440. @) In any contested case where the insurer has contested liability in whole or in part, including contested cases involving petitions to terminate. reinstate, increase. reduce or otberwise modify com~ensation awards, agreements or other p, the employe or his dependent, as the case may be, in whose.favor the matter at issue has been finally determined shall be awarded, in addition to the award for compensation, a reasonable sum for costs incurred for attorney's fee, witnesses, necessary medical examination, and the value of unreimbursed lost time to attend the proceedings: Provided, That cast for attorney fees may be excluded when a reasonable bas~s for the contest has been established[: And provided further, That ifl,

/b) If counsel fees are awarded and assessed anainst the insurer or emplover. then the referee must make a fmdinn as to the amount and the lenath of time for which such counsel fee is pavable. based upon the complexih, of the factual and lenal issues involved, the skill required. the duration of the uroceedinas and the time and effort required and actuallv expended: If the insurer has paid or tendered payment of compensation and the controversy relates to the amount of compensation due, costs for attorney's fee shall be based only on the difference between the fmal award of compensation and the compensation paid or tendered by the insurer.

[In contested cases involving petitions to terminate.reinstate, increase, reduce or otherwise modify compensation awards, agreements or other payment arrangements or to set aside fmal receipts, where the contested issue, in whole or part, is resolved in favor of the claimant, the claimant shall be entitled to an award of reasonable costs as hereinabove set forth.]

Section 20. The act is amended by addmg a section to read: Section 440.1. In the event the insurer is found to have

acted in an unreasonable manner and in bad faith in refusing to pay the benefits when due, the insurer shall pay. in addition to the benefits owed and the interest thereon, court costs and a reasonable attorney fee based upon actual time expended.

Section 20.1. Section 447 of the act, added May 20, 1976 (P.L.135, No.61) is amended to read:

Section 447. (a) There is hereby created an advisory council, to be known as the Pennsylvania [Workmen's] Workers' Compensation Advisory Council[, and to be composed of men and women with an equal number of employer, employe, and public representatives who may fairly be representative because of their vocation, employment, or affiliations]. The council shall [consist] be comprised of [a maximum of seven] ~&LJ members [including the], with four members beinn emulove representatives and four members being em~lover representatives. The Secretary of the Department of Labor and Industry[, who] shall be an ex officio member. The members of such council shall be appointed as follows: one employe representative and one employer representative by the [secretary within thirty days of the effective date of this amendatory act and shall serve a term of two years and until their successors have been appointed and qualified] President pro tempore of the Senate. one emulove representative and one em~lover representative by the Speaker of the House of -eve revresentative and one emplover r e o r e s e n t a t j v e o r t t y Leader of the Senate and one emp-d one emplover representative bv the -use of Representatives. The members of the council shall select one of their number to be chairman. [Such council shall consider and advise the department upon all matters related to the administration of The Pennsylvania Workmen'sCompensationActandThe PennsylvaniaOccupational Disease Act. Such council may recommend to the secretary upon its own initiative such chaages in the provisions of these acts and the administration thereof as it deems necessary and shall make periodic reports to the secretary regarding the performance of its duties and functions.]

(b) [In the performance of its duties, the] (1) council may hold hearings, receive testimony, solicit and receive comments [and information] from interested parties and the general public and shall have full access to information relating to the [purpose of these acts] administration of this act by the Department of Labor and Industry. The council shall not have access to confidential medical information pertaining to individual claimants, but may develop statistical studies and surveys concerning [the] w f incidence of [occupational] injuries [and diseases gene rally.]^, claims management, litigation, and adherence to the vrovlsions of this act and the Occupational Disease Act.

(2) The council shall review amuallv any requests for funding bv the department and any assessments against em~lovers or insurers related thereto and ~rovide a revort to the Governor, the secretary and the General Assembly regarding the aoproprlateness of such requests.


1ao'l LEGISLATIVE JOURNAL - HOUSE 605


described in clause (b)(l) or any extension of that period under I

period described m parawaph ( I ) or any extension thereof (cl ( I ) Sublcct to approval or disapproval under clause (bl.

a ratlog organization shall file with the commissioner ( I ) On an annual basis. workers' compensation rates and

rating plans that are limited to urovision for claim payment. (ii) Each workers'compensation policv form to he used by I

its members. ... (ml The uniform classification system. (iv) The uniform experience rating plan and related rules. (v) Anv other information that the commissioner requests

relevant to the foregoing and is otherwise entitled to receive under this article.

(2) Notwithstanding any other provisions of this article, the commissioner mav approve or disapprove any filing by a rating organization without determining whether a reasonable degree of competition exists within the market.

(d) If each rate in a schedule of workers'compensation rates for specific classifications of risks filed bv an insurer is not lower than the provision for claim pavment contained in the schedule of workers' compensation rates for those classifications filed by a rating organization under clause (c) and approved pursuant to the provisions of this article. then the schedule of rates filed bv the insurer shall not be subiect to clause (b) but shall become effective for the pwvoses of section 705.

re) Notwithstanding clause (d), the commissioner may investigate and evaluate all workers' com~ensation filings to determine whether the filings meet the requirements of this article.

( f ) Notwithstanding the provisions of section 705, the ~~ ~-

commissioner mav require any insurer or rating organization to complv with the requirements of clause fb) if the commissioner has found pursuant to section 710. that a reasonable degree of comuetition does not exist within the workers' com~ensation insurance market.

Section 710. (a) If the commissioner finds after a hearing that a rate is not in compliance with secticn 704 or that a rate had been set in violation of section 71 3. the commissioner shall order

expire one year after its effective date unless rescinded earlier by the commissioner.

Ib) (1) Pending a hearing, the commissioner may order the susuension ~rospectivelv of a rate filed bv an insurer and reimpose the last orevious rate in effect if the commissioner has reasonable cause to believe that:

Ii) an insurer is in violation of section 704; (ii) unless the order of sus~ension is issued, certain insureds

of the hearing. (c) (1) At any hearing to determine compliance with ~ -

secuou 704, uursuant to claush(a; the commissroncr shall iust dctermme whether a reasonable degree of competit~on exists withm the market, and shall give a ruliua to that effect. All insurers o~erating withim such market shall have the burden of

coverage; (ii) market shares; ... (111) changes in market shares; and fiv) ease of entrv. (2) If the commissioner determines that a reasonable degree

of competition does not exist m the market, any tnsurcr dcslnnated by the commissioner shall have thc burden o i iustifving its rate m


Section 816. Each fund shall be assessed amuallv bv the department in a like manner and amount as other insurers or self- insurers are now or hereafter assessed under this act and the Occupational Disease Act and shall Day such assessment in accordance with this act and the Occupational Disease Act. All contributions received in accordance with this section shall be deposited . . into ". the apwopriate fund as required by the applicable provlston or law.

Section 817. Any group of five homogeneous employers who will provide to the fund an annual volume of premium of at least five hundred thousand dollars ($500.000) may become subscribers as a group to the State Workmen's Insurance Fund for the purpose of insuring therein their liabilitv to those of their em~loyes. Such group shall become legally obligated to pay anv emplove compensation required by this act because of bodily iniury by accident or disease. including death at any time resulting therefrom, sustained by such employe arising out of and in the course of his employment. Such group shall make a written application for subscription for group insurance to the board. Such application shall designate the name of the group subscriber and shall include such information as determined by the board as will allow the board to identify the employers and to adequately assess risks and premiums to be charged to emplovers to be insured bv the fund under the group subscription.

Section 818. The department is authorized to promulaate rules and regulations for the administration and enforcement of this article.

ARTICLE IX. SELF-INSURANCE GUARANTY FUND

Section 901. The following words and phrases when used in this article shall have the meanings given to them in the section unless the context clearly indicates otherwise:

"Compensation" means benefits paid vursuant to sections --

306 and307. "Employer" means a self-insured employer or the emplover . . . .

as defmed m this act. "GuaranN Fund" or "fund" means the Self-Insurance

Guarantv Fund established in section 902 for defaults which occur on or after the effective date of this article.

"Security" means surety bonds, cash. negotiable securities of the United States Government or the Commonwealth or other negotiable securities, such as letter of credit, acceptable to the Insurance Department which are posted by the fund to nuaranq the payment of workers' compensation benefits.

"Self-insurer" means an emoloyer exempted under section 305 or a group self-insurance fund permitted to operate under . . . . . . .

insured em lo ers. rynrtzdirl account for self-insurance pooling as defined

oefitofaims arising from under sectlon 801 lor the excluslvr he -

&ultlnv memhers of pooling ananwements. dl 'The secretary shall he the admtnletrator of the tundand

shall . i a \ e . the powrr to collect, dispense and dlspersr monev lrnm



(e) Insurers that fail to file timelv antifraud plans as required bv subsections (a) and (c) shall be subiect to the penalty rovisions of section 320 of the Insurance Comvanv Law of 1921.

fnsurers that do not make a good faith attemvt to file an antifraud plan which comvlies with subsection (b) shall also be subiect to the venaltv provisions of section 320 of the Insurance Com~anv Law of 1921: Provided. That no penalty mav be imvosed for the fwst filing made by an insurer under this article. Insurers that fail to follow the antifraud plan shall be subiect to a civil venalty for each violation. not to exceed ten thousand dollars ($10.000) at the discretion of the commissioner after consideration of all relevant factors, including the wilfulness of any violation. m No later than one hundred twenty days after the effective date of this section, all applications for workers' compensation insurance, renewals and claims forms shall contain a statement that clearlv states in substance the followinn:

"Any person who knowinplv and intentionallv files a fraudulent appllcat~on or clam shall, upon convlctron, be gu~ltv of a felonv of the thud degree and sub~ect to pay a f i e of not more than llftecn thousand dollars IS15.000). or lo underxu imprisonment for a veriod of not more than seven

reasonable belief. (2) (i) If. by its own inquiries or as a result of complaints

or as a result of notlficatlon hy an insurer. the d ~ v ~ s ~ o n reasonably knows the ~dentltv o i a person who ~t has reason to bel~eve commln<d a fraudulent act rclatmr to a workers' compensatlon m,urancc cla~m, wrltten not~f!catrou shall hr prov~ded to all such persons no later than sixty days from the time the division reasonablv knew the identity of the person believed to have committed a fraudulent act.

(ii) This notification shall include the basis of knowledge or reasonable bel~ef-

[ I ~ I I The dlvlslon shall prov~de all persons who are nmpl~cated m the notlce w~th an opportuu~tv to present exculpatorv evidence.

(iv) Such requirement for notification and for o ~ ~ o r t u n i t v to present excul~atorv evidence shall be applicable to all law enforcement agencies. including. but not limited to. district attornevs.

id) An insurer providing information to an authorized governmental agencv pursuant to this section shall provide the information within a reasonable time, but no later than thirty days after the date on which the dutv to report arose.

(e) (1) Anv information acquired pursuant to this article shall not be part of the public record. Except as otherwise provided by law, any authorized aovernmental anencv. insurer or agent which receives anv information furnished pursuant to this a r t ~ ~ l e shall not release thaL~utormat~on tc, anv person no! authorized to recelve the miormal~on under th~s art~cle A perso_q

I yho violates this clause is nuiltv of a misdemeanor of the third

(2) The evidence or infomation described in this section shall be privilened and shall not be subiect to subpoena or subpoena duces tecum in a civil or criminal vroceedinn. unless,

1 Gee of and compliance with a subpoena or subpoena duces

analysis of the averagk workload per workers'compensation judge and a plan to reduce the delays in deciding workers'compensation petitions, including any necessary increases in the number of judges and supporting staff.

Section 23. No later than December 31, 1994, the Secretary of Labor and lndusav shall submit a report to the General ~ s s e m b l ~ regardmg th; feas~blllty of allocaimg a portlon of the long-term savmgs from thls act for a cost-of-llvmg Increase for persons recelvlnn workers' cornpensallon benefits because of a iota1 disability. -

Section 24. Notwithstanding any other provision of law to the contrary, regulations promulgated under the authority of section 306(f.l)(3)(ii) of the act, as amended by this act, shall not be subject to the provisions of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act, or the act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act.

Section 25. The Commonwealth, its political subdivisions, their officials and employees acting within the scope of their duties shall enjoy and benefit from sovereign and official immunity from claims of subrogation or reimbursement from a claimant's tort recovery with respect to workers' compensation benefits.

Section 26. (a) In order to provide an efficient implementation of this act and to assure fair and equitable treatment of insureds and insurers. the order and adiudication ~- ~ ~ ~~~~

issued by the commissioner, dated December 1, 1992, in re Workers' Compensation Rate Revision of 24.26% is set aside as being in conflict with this act.

fb) The commissioner shall issue a revised order, based upon ih; data prov~ded in the rate filmg for the order whlch 1s set as~de under subsectron (a) and the record rclatmg to that filmg, approving manual rates to be applicable to all new and renewal aolicies. In this revised determination of rates. the commissioner r ~ - - ~ - ~ ~ ~~~ ~~~~

shall make an adjustment to reflect the savings estimated to be produced by the limitations on payments to health care providers


and by the other changes included in this act and shall give due consideration to the extension of trend factors for an additional year and the change in the Statewide average weekly wage as of January 1. 1993.

(c) Any insured that received an increase in premium cost as a result of the order and adjudication set aside under subsection fa) shall receive a oro rata discount on fuhlre oolicv renewals , - ka'wd on the relatlv; dtfference between the rev;sed rates tssued

~ e r subsection (b) and the rate whlch was unposed as a result the order and adjudication set aside under subsection (a).

Section 27. For purposes of the initial filing only, notwithstanding any other provisions of this act, the following provision shall apply:

( I ) Each rating organization shall file, within 60 days of the effective date of this act, a loss cost filing oursuant to section 709fc) of Article VII of the act for new and renewal pol~ctes for workers' compensaion msurance Such filmg shall be subjcct to approval or dtsapproval by the commtssloner pursuant to k t lc le V11 of the act, but such I approval or d~sapproval shall be made not later than 30 calendar days after fust receipt of the loss cost filing.

(2) In the absence of an order approving or disapproving the loss cost filing within 30 calendar days of its first receiot. the filing shall be deemed to meet all the - ~e~uirements'of this act.

(3) No later than 30 days from the date of the actual or deemed approval of the above loss cost filing, each individual insurer shall file for the commissioner's aooroval . . or disapproval provistons lor loss adjustment, expenses. assessments, taxes and profit and contmgency allowances. The effective date of such filmgs shall be the date specified . in the filing.

(4) On or before March 1, 1993, the commissioner shall publish an aggregate factor for loss adjustment expenses, assessments, taxes, profits and contingency allowances which insurers may use in the foregoing initial filings. Any insurer filing which uses anaggregate factor not in excess of the foregoing factor shall be deemed approved upon filing for purposes of this section.

(5) The commissioner shall publish different aggregate factors for policies sold through independent agents and for policies sold directly to insurers. Section 28. (a) The following acts and parts of acts are

repealed, to the extent specified: Section 654 of the act of Mav 17. 1921 fP.L.682. No.284). .

known as The Insurance cornpa& 1 . a ~ of i921, except wrih regard to insurance as to ltabtlity under the Longshore and Harbor Workers' Compensatton Act (44 Stat. 1424, 23 US.(:. 6 901 et seq.).

75 Pa.C.S. $8 1735 and 1737, absolutely. (b) The provisions of 75 Pa.C.S. 4 5 1720 and 1722 are

repealed insofar as they relate to workers'compensation payments or other benefits under the Workers' Compensation Act.


Section 29. This act shall take effect as follows: ( I ) The addition of Article VII of the act shall take

effect immediately. (2) The addition of Articles VIll and IX of the act

shall take effect in 120 days. (3) Sections 26, 27 and 28(a) of this act and this

section shall take effect immediately. (4) The remainder of this act shall take effect in 60

days.


The SPEAKER. The gen t l ema Mr. Adolph, is recognized. Mr. ADOLPH. I urge my colleagues to suppon this

amendment. W you very much.

The SPEAKER The Chair thanks the gentleman. The gentleman, Mr. Fajt, is recogtllzed. Mr. FAJT. Thank you, Mr. Speaker. I would like everybody to realize that this is the Adolph

amendment that lost earlier by a vote of 97 to 104. I would

C like to urge all of my colleagues that stood with me before in the interests of small business to stay with me again. I think we have the votes this time. Thank you.

The SPEAKER The gentleman from Somerset County, Mr. Lloyd, is r e c w

Mr. LLOYD. Mr. Speaker, just to reiterate. Mr. Speaker, I ask for a "no" vote on the amendment The SPEAKER The Chair thanks the gentleman


The following mll call was recorded.

Adolph Allen Argall -ng Baker Badcy Baniao Birmelin BoyeJ B m Bmt Bush Csrone Cesslr Chndwick Civem ClsrL Clymer Coha, L. I. Cornell D w Dmt Lhuse Egolf Fimhild

A wsta Lkbkdones Belardi BeIfsnti Bishop Blaum Butkovitz Buxton CdLlgimne Capbanca Cam Cawlcy Cohen, M. Colafella Colain0 Corrigao Cowell COY cuny Daley

Fajt [rub Fargo [rwlesp Fanncr Lee Fichfa Leh

L P ~ nick Maitland GamMs Muaiso Gamoa Msslslld Odd Merry Galseh Miccmje Godrhall Miller GNFP N d l a Henna Nickol Harley NF Hasay Pnvl Hskler Pdtit HeWm-Y Phillip Harmn Pi- H d e y matts Hess Raymood Hutshinson Rebcr Jdouiec Rdnrrd Kmey Robrrr King RuMy ~ r r b s R Y ~

NAYS-I01

Gsorge Mayemit Giglidti McCIll Gladpk Mfficeban Gordoer McNdly Gmita Melio Haluska Michlovic Hughes Miblich Itkin M ~ Y J- Murphy larolin O'Blieo laaephs O'Donnell Kaiser Oliver Kssmic Pesci Keller Pdma Kirkland Pdmne Kukovish Piccola LaGrotLl Pistell8 Laughlin Pnston Laderer Richardson Lemvitz Rieger

Satha Ssurrmn war Sch& %hula ScMnd Scnfini Smith B. Snyder, D. W. Sldl S k m Sletla SIriumuer

w Tayla, E. 2. Tomlioson Trve Tvlli Ulim v- Vilsli Waugh w o w Wlight. M. N. zua

Steighner SNrla Sum T.n$mti Taylor, I. Thomas Time T ~ I I O Tlirich Van Home Vsnn t ---

William W d a k Wright. D. R

1993 LEGISLATIVE JOURNAL - HOUSE

Mu* Murphy Nailor Nickd

Nyce O ' B d e O ' b d l Oliver Pazcl Pcsi mnuca Petmne Pcait Phillip Piccols PirPeUa Pins PI& Rsaoo Raymond R e k R d d Rich.rdsw Riega Rim Rokr(s RobiMon RoeCuck Rohnr Rmney Rubley Rudy

Dehcn Rim Ymdrisevita DBmody Linton Rabefis Ynvsis • SY Lloyd

Robinson hcylr Roebuck D ~ w e c a ~ hd.ndaino h e y sPesLer

Erreman MaIkwk Rudy

NOT VOTING-2 Stirb D h m

EXCUSED-1 O l w

The question was determined in the negative, and the amendment was not agreed to.

On the question recurring, Wi the House agree to the bill on third consideration as

amended? Mr. COY offered the following amendment No. A0625:

Amend Sec. 20 (Sec. 704), page 61, by inserting between lines I 1 and 12

d) In calculating premium rates for individual emolovers, the tdtal a roll amount of an emoloyer shall not include the amount ~ e ~ m o l o v e r contributes under section 401(k) of the . Internal Revenue Code of 1986 (Public Law 99-514 26 U.S.C. P 1 el sea).

SLdttrmttcr Shlrla Suna Tansrem Taylor. E 2. Taylor, J. mmrs Tigue Tamlilwon Trdlo Tdsh T N ~ Tulli Ulians van- Vao Home v o m ViWi w.ugh WiUisms wow w o m i a Wright, D. R Wdght, M. N. Yandrisevicn Yovcic zup

Dewocr,

Bwh Hdurka Butkmik H- B"xloa Hdcy Oltagirone H ~ Y -bimcs Heckler Cam Hmnesv Carom H e m Cawley H d e ~ C e r Hess Chaiwick Hvshes Civera Huebinson Clu* ltkin Clymcr Idlavies M e n , L. I. J w Cohen, M. Iuolin

2 2 lareph Kaiax c0nig.n Kagvnic Cavell Keller COY Kenney cw Kiog Dalq. ~ i r k l d

Krrbs LGmttr - .

ht h u b MY Lughlin DonaNCSi h l c u Dm= Ledrrer -am Lee Egolf Leh Evans LescoviQ Fairchild Levdous*,


The SPEAKER On that question, the Chair recognizes Mr. coy.

Mr. COY. Thank you, Mr. Speaker. Mr. Speaker, this amendment is meant to change the

calculation formula whereby employers withholding premium - rates on employees and their contributions to 401(k) or other retirement plans wouId be excluded from those premium payments. - I ask for an a m a t i v e vote.



Z C h Allen ArsPll

Baker Barley Battido Bebk-Joaes B e l d Belfanli

YEAS-200 Farmer Lucyk Fee Lynch Fichter Maitland Eleagle Mandedoo Flick Markosek F m n Marslco Gamble Masland Gannoo Mayernik Geia McCall George McGeehan Gerlach McNally Giglidti Melio Gladeck Godshall Michlovlc Cordoer Mic-e Gnritza Mihalich GW Milla

Sanmni Sather S~unnau Saylor S c h e Schuler Scnmenti Semmel Serafin, Smith. B. Smith. S. H. Snyder, D. W. Staback Stain Steelman Steighner Sei l

Fsjt Lioton RG s e F w Lloyd

NAYS-1

Colaiw,

NOT VOTING-1

Kukovich

EXCUSED-1

O l m



amended? Mr. FREEMAN offered the following amendments No.

A0609:

Amend Sec. 4 (Sec. 204), page 7, line 17, by striking out .'f A)*' U

Amend Sec. 4 (Sec. 204), page 7, line 30; page 8, lines 1 though 13, by striking out all of said lines on said pages


AMENDMENTS WITHDRAWN

The SPEAKER. On the question, the Chair remgnks the gentleman, Mr. Freeman.


Mr. FREEMAN. Mr. Speaker, I will withdraw my amendment at this time.



amended?

The SPEAKER The gentleman, Mr. Belfanti, offers the following amendment, which the clerk will read.

The gentleman, Mr. Belfanti, withdraws his amendment.

On the question renuring, Will the House agree to the bill on third consideration as

amended? Bill as amended was agreed to.




Am*a Argall B.tlirco -Jones

&Ifanti Bishop Blaum m u Bluior, - C+anca CM &ley c ivap Cohm, M. Cdafcll. Colain', Cwdg.n C d l coy curry h l v IkLuu Damody

Durham Evans Foe

A a p h Allen -g Baker m e y B i d i n eoYes B m Bunt Bush Csroae Ceswr

Y E A

Freeman G m m Ganse Gigliati Gndn01 ONitra HaluacS HULD. H* Itkin l ama lamlin losephs K a i n Kuunic K d l a K m e y Kirkland Kvlrovich I a G W hughlin Ledem Lacwit7

Linton LloVd Lusyk Mandaiw

,S-I I1 Msrl;osek Mayanik MdMI Me0Ceh.n McNally Mclio Michlovic Mihslich Mundy Murphy N y ~ e O ' h e l l Oliver P& Petram Petme PisWla Reslon Raymwd Ricbardron Rim Rittcr Roberts Robiaron Raebuck Rmney Rudy Sant.,toni

Fugo F- Fichta Fleagle Flick Gamble Gdst Gdaeh Gl&k Gcdshall GNPPO Harley

Lawless Lee Leh Lyach Maitland Mawco Madand Merry Micoeie Miller Nailor Nickol

scrimenti Semmcl Saafini Say& D. W. Staback Steelman stsighner Stdler Stish Sturln S u m Tangrati Taylor, I. Thom~s Tiguc T d o Trich Van Horne vew Williuns wogsn wormink Wright, D. R Yadrisnita Ywcic

Ry.n Ssthn Saunnm saylor k h & khuler Smith, B. Smith, S. H Stairs Steil Stem StriHMLtPr

MARCH 30

Chdwisk H ~ Y O'Brim Taylor, E. Z. Clack Heckla Peuel Tomlinran C ~ W H a w PQit True Cohen, L. I. Hamaa Phillip Tulli cornell Hashey Piccola Uli.lla C D=v+V Hess Pitts V.nsc Dent Hutchinran nattr ViWi hucc I d a v i c s Rebs WauBh E d f King R d d Wright, M. N Failsbild K& Rohm ZW Fajt b u b W I ~ Y

NOT VOTING4


Ordered, Tbat the clerk return the same to the Senate with the information that the House has passed the same with amendment in which the concurrence of the Senate is

I RULES SUSPENDED

The SPEAKER The gentleman, Mr. Itkin, the majority leader, is recognized for the p;lupose of suspending the rules for the adoption of resolutions - HR 55, HR 53, and HR 54.

I On the question, Will the House agree to the motion?

I The following roll call was re&

Adolph Allen Argall -w Baker Barley B.nirco Bcbko-Jones BElsrdi Belfnati Birmelin Bisbop Blaum eoycr Bmwm Bunt

Fargo Fa- Fee Fishta Fleagle Flick Freansn Gamble G m o n Gtist George Oerlach Giplid G W k Gcdshdl Goniacr G ~ i t z a

YEAS-199 Lintao Lloyd Lucylr Lynsh Maitlaod Mandaino MarLoaelr Marsim Masland Mayanik MdMI McOcehsn McNdly Melia M m y Michlwic Miccrme

RF SMbni sather S a m sayln k h o e e Sfhula s c r i m t i Smvnel Saafini Smith. B.

~ u s h G ~ p p o Mihslich %i Butkwitz Hnluska Miller Stem Buxton Hanna Mundy Staler Caltsgimae Harley Mulphy stish Cappabisnca Hasay Nailor Strillmatter Carn Heckler Nickol S M n Camae Hennesvy N P S- Cawley H m n O'Brien Tangreni C-r Hmhey O'Donnell Taylor. E. 7.. Chadwick Hess Oliver Tavlor. I. c" - - - ~~~ ~ ~ , . Civera Hughes Penel Illomas Clark Hutchinulo Pesci Tigw

We are ~oing to attempt to m a cou~le of resolutions, and

1993 LEGISLATIVE

ClYrnr Itkin Pcvurs Tomliom Cobcn. L. I. Jadlam'ec Petmne Tdlo 8 James Penit Trich

Iuolin Phillip Tnu? 1-8 Piccola Tulli

6mell Kaiser Piaella Uliw w g a n Kasmis Pitts Vance W e U Keller matts Van Home Cay K ~ e y F'macn Vson CW King Raymond ViWi MY Kirkland Rsber Wsugh DeLuce Kukovich Rcinard woslm J'-T=Y L a G m Ricga W ~ a k

Laub Rim Wrighf D. R 0s Laughlin Robeas Wrighr M. N.

Lawlers Robinson Yandnseviu L a d m Rdmck Yewcis

huham Loc R o h zug %Lf Leh Rmoey E v m Lescovie Rubley Dew- Fairchild Levda* Rudy speaker Fajt

NAYS-I

Krrba

NOT VOTING-2 Risbardsoo William .

EXCUSED-1 Olue

A majority of the members elected to the House having voted in the affirmative, the question was determined in the affirmative and the motion was agreed to.

VOTE CORRECTION

- 'Ihe SPEAKER The gentleman, Mr. Wobak, is recognized. For what purpose does the gentleman rise?

Mr. WOZNIAK. To correct the record. . On the Buxton amendment to SB 1, amendment A0658, I inadvertently voted myself in the negative but I wanted that vote to be an affirmative, and I would appreciate that that be spread upon the record.

The SPEAKER The Chair thanks the gentleman. His remarks will be spread upon the record.

- - we will retum to corrections for the record

RESOLUTIONS

JOURh'AZ, - HOUSE 619

WHEREAS, The Department of Military Affairs has served the Commonwealth for two centuries; and

WHEREAS, In those 200 years it has directed the militia of this Commonwealth in outstanding service to the Nation and to the Commonwealth; and

WHEREAS, In the operation of veterans homes at Erie, Hollidaysburg and Spring City, the Department of Military Affairs has seen to the care of the men and women who have gallantly served in the armed forces of the United States; and

WHEREAS, The Department of Military Affaira has faithfully and ably administered benefits programs to Pennsylvanians seriously wounded in the service or who have given their lives to the service; therefore be it

RESOLVED, That the House of Representatives congratulate the Department of Military Affairs on its bicentennialand express its appreciation for its stewardship of the Commonwealth's militia over that period of time and for its care of Pennsylvania's veterans; and be it further

RESOLVED, That the House of Representatives thank the Department of Military Affairs for the services performed by the Pennsylvania National Guard in times of natural disaster and manmade turmoil, most notably recently during the blizzard of 1993 and for the services performed for the Nation when enemies have threatened the Nation's well-being, as it did so well during the recent war in the Persian Gulf.

Peter 1. Zug



YEAS-199 Amaa Adolph

Fsnaer Lloyd RF Fee Lud Sanlolli

A I I ~ Fichta Lmch satha Argall FlaSle Maitland saumm b g Flick M 4 w sylm Baker Fnnnan Mmkmek SEh& me^ Gamble Mania, Schuls Banisto ~ m o n c as land kimelti wbJ,es Geist mVemilr Sommel Belardi George McCall Sauim ~ h t i ~ a i v h Mffieehsn smith, B.

E! Gigiiolti McNally Smith, S. H. Glsdsk M*io Snyhr, D. W.

BI~,,,,, oadrhail Merry stuback Bo)"E. ~0rdne.r Michlaic sI.irp

B- ~ r ~ i t l a ~ i m m i ~ %"MU

Bunt Bush

G N P P ~ Mihslich Hsluska Milla Stcil

Butkovitz H- Mundv Stem

The SPEAKER. HR 53, the gentleman, Mr. Zu& is the sponsor. The clerk will please read the resolution.

The following resolution was read:

House Resolution No. 53

A RESOLUTION

Congratulating the Department of Military Affairs on its bicentennial.

Buxion Caltagime Capbiaaca Cam Came Cawley Ceaw Chamuick civaa Clark Clymrr Cohen, L. I. Cohen. M. Colafella Colauzo Cornell comgan Cowell

Hdey H=Y Heckler Henn-w H-n H d e y Hess Hughes Hutchroan ladlauiec l a m Jamlin Josspbs Kaiser Karunic Keller Kenosy King

M W ~ Y Nailor Nickol N~ce O'Brien O'Donndl Oliver Peslel Pepci Paama Pdmne Penit Phillip Piccda Pistells tins Plans m o n

Stcclu Stirh Stdltmam %a Suna T W Taylor, E. Z. Taylor, I. ThOrnLI Ti* Tcmliam Trello Trich T w Tdli Uliana Vance Van Home


I.awrence Roberts - - . . -. . Donald W. Snyder Thomas C. Cotrigan, Sr, Carole A. Rubley Thomas E, A I ~ S ~ I O U ~

T. J. Rooney Michael P. McGeehan Lynn B. Herman Gordon 1. Linton Joseph M. Uliana Elinor Z. Taylor Robert L. Freeman Thomas F. Yewcic Herman Mihalich Richard A. Kasunic Ralph Kaiser George T. Kenney, Jr. Dwight Evans Gaynor Cawley Lita lndzel Cohen H. William DeWeese David 1. Steil William F. Keller Matthew E. Baker Anthony Hardy Williams William F. Adolph, Jr. Sara G. Steelman Raymond Bunt, 11. Samuel E. Rohrer Albert H. Masland Thomas A. Tangreni Dennis M. OBrien Robert M. Tomlinson Thomas W. Dmce


The SPEAKER On the question, the Chair recognizes Representative Josephs.

Ms. JOSEPHS. Mr. Speaker, I just would like the desk to * be left open after it passes so people who did not get their name on can come forward and do that. Thank you, Mr. Speaker. -

The SPEAKER The clerk is thereby instmcted to have the desk remain open for the additional sponsorships.

The Chair thanks the lady.

On the question reamin& Will the House adopt the resolution?

The following mil call was recorded:

YEAS-202

AcoSlA Adolph Allen

A m w Baker Barley Ballisto

Fargo Farmer Fee Fiehtsr Fleagle Flick Freeman Gamble Gannon Madand Semmel Geid Mayemik Serafin;

Belfanti George McCall Smith. B. Birmelin Gerlach McGeehan Smith, S. H. Bishq Gigliotti McNally Snyder, D. W. Blaum Gladeck Melio Staback

Bunt Buab B u h i a &uton Calhgimne Cappbianca c.m h o n e &,"ley C- C M c k Civm Clark Clymer Cobm. L. I. Cohen. M. Colafella Col.in0 Comell Conigan h e l l coy curry Daley DeLuca Dew=Y Dab D m D m ~ c e i Dmce Durham Egolf Evans Fairchild Fajt

On6121 M i h e GWQO Mhlich H a l h M i k H- M W H d e y Murphy Hruy ~ d ~ r Hefkler N i c d H m n e r y NP H- O'Bdan Hanhey O'WI H s r Oliver Hugh- Peael Hutshinson Peri ltkin Pclrprca

Isdlavvies Pr*moe lames Pmit lamlin Phillips M b Picsola Kaiser PiaWls KaSmis Pias KeUer Flatb K w ~msar, King Kihland

hymomd R k

Krebs R M KuLovich Rishudsoo LsOmtt. Ricga h u b Rim Laughlin Robats Lawless RobinsOD Ledera ReZbKk Lee Rohra Leb b e y Lercavitz M I e y Levda-kY Rudy

N A Y S 4

NOT VOTING4

EXCUSED-1

w m Stail Sccm Str*la Stirb Striunnlta shui. 9um T.agre(ti Tayla, E 2. Tayla, I. Thmw Tiguc Tomlinm TRUo Tdch T m Tulli Uliana vu~e Vm Home vavl Vitdi W a d Williams W0g.n wmlisk Wd& D. R Wd& M N. Yandrirvita Ywcic zup


The SPEAKER On HR 55, the gentleman from Pittsturgh, Mr. Fajf is recognized.

The clerk will please read the resolution

The following resolution was read:

House Resolution No. 55

A RESOLUTION

Commemorating the week of April 4 through 10, 1993, as "The Moving Wall W e e k at St. Vincent College in Latrobe, Pennsylvania.

WIIEREAS. The "Movtng Wall" IS a 250-foot-long rcpl~ca of the Vlelnam Veterans Memor~al m Washtngton, D.C.; and

WHEREAS. I! was uunstructed m order to share the posittve and healing benefits that the memorial seems to bestow on all those who come in contact with it and to give that same opportunity to the thousands of Vietnam Veterans, Gold Star




Parents and all Americans who might never bave an opportunity to travel to o w Nation's Capitol; and

WHEREAS, The "Moving Wall" has been displayed in 268 communities from Hawaii to Alaska across the continental United States, as well as Canada; and

WHEREAS, On April 4 through 10,1993, the "Moving Walr' will be on display at St. Vincent College in Latrobe, Pennsylvania; therefore be it

RESOLVED, That the House of Representativescommemorate the week of April 4 through 10, 1993, as "The Moving Wall Week" at St. Vincent College in Latrobe, Pennsylvania; and be it funher

RESOLVED, That a copy of this resolution be transmitted to Mr. Matt DiGiacomo. 900 Florida Avenue, Pittsburgh, Pennsylvania 15228.

Gregory C. Fajt Jess M. Stairs John W. Fichter Joseph F. Markosek Timothy L. Pesci Ralph Kaiser Anthony I. Melio Frank W. Yandrisevits Jere W. Schuler Thomas F. Yewcic Lita indzel Coben Thomas W. Dempsey Matthew E. Baker David G. Argall Michael K. Hanna Lynn B. Herman Frank J. Giglioni Carole A. Rubley Jerry L. Nailor Jim Lyncb Kathy M. Manderino

Awda Add* Allm Arsall -8 B.ta m e y Batti* Bsblro-Jones Belad Eelfanti Bimrlin Bishap Blaum eoycs B m Bunt Bush Bukov+b Budm Ca l t a ime Cappbi- Cam Cnmne Cawley Cgs.r Cbdwick

Civm Hushes Pard Thamu CIwk Hutchimn PasEi T i p Clymer Itkin Pccrslu T d n a o n Cohen. L. I. ladlovvis Pame T d l o Cohen. M. lama m t Tdch Colafclla I d i o Phillip TNC

C Colaino Joseph P i d . Tulli ComcU Kaiser P i W U l i w Cnrig.n K.ruDic Pitts Vans cowell Ken= n m Van Hone c.,y K-ey Preston V m CW King Raymond Vitali ~d~ Kirkland Reba &LUC~ KRbs Reinud Willi- Demp&y Kukwich Ri~hdmm W0g.n Dent h G m R i m

a wcnniak Damody h u b Rim Wdght, D. R DonstuFei Laughlio Robnts Wright, M. N. D m hwlear Rdinaon Y d n i t . Durham Ledacr Roebuck Y ~ v c i c E p l f Lee Rohrsr ZUE Evans Leh b n e ~ Fairchild Lepmvltz Rubley Dew% Fajt Levdansky Rudy s ~ a k m

N A Y S 4

NOT VOTING4

EXCUSED- I

Olanr

The question was determined in the affirmative, and the resolution was adopted. w

Faw F m Fee F i c h e

Rick Frec~ll

O d e O.nn00 Geisl CIIorse Gerlaeh Qigliati Gldcck Godshall OordoR Gmitra 0- Haluska H a m H d e ~ Haaay Hslder H--=Y Herman H a h e y Hess

Link% Lloyd Lucyk Lynch Maitland M&no Markosek Marsiw Masland Maycmik Mec.II McGceban McNally Melio Meny Micblwic M i b e Mihdich Miller Mundy Murphy Nailor NicM N ~ c e O'Brim O'DoMell Oliver

Rysn Santoni 5 3 t h ~ Salm"m Saylor Scbcerz khuler S c r i m t i Semmel Seralini Smith, B. Smith, S. H. Snyder, D. W. Staback Ski, Steelmsn Steighner Steil stem SWer Stish Strinmsner Shlrla Surm Tanpetti Tayln; E. Z. Taylor, I.

RULES COMMITTEE MEETING

The SPEAKER The Chair recognizes the majority leader, Mr. Itkin.

Mr. ITKIN. Mr. Speaker, at this time I would like to call an immediate meeting of the Rules Committee for the purpose of reporting out HR 41.

The SPEAKER The Chair thanks the gentleman. An immediate meeting of the Rules Comminee at the

majority leader's desk.

VOTE CORRECTIONS

The SPEAKER The Chair recognizes the gentleman, Mr. Stish.

Mr. STISH. Mr. S~eaker, I would like to correct the record. • On amendment 663 to SB 1, my button malfunctioned. I

would like to be recorded in the negative. The SPEAKER The Chair thanks the gentleman, and his

remarks will be spread upon the record. The Chair recognizes the gentleman, Mr. O'Brien, from

Philadelphia. Mr. O'BRIEN. Thank you, Mr. Speaker. On final passage on SB 1, I was recorded in the negative.

I wish to be recorded in the affirmative. Thank you. The SPEAKER The C h r thanks the gentleman. The Chair recognizes Mrs. Harley.

t


RESOLUTION REPORTED FROM COMMITTEE

Mrs. HARLEY. On HB 559 my switch malfunctioned, and I would like to be recorded in the negative.

The SPEAKER The Chair thanks the gentlelady, and her

ER 41, PN 950 BY Rep. ITIUi-J A Resolution designating April 1993 a s "Pennsylvania Organ

a n d Tissue Donor Awareness Month."

Kulravich Eega wormi.~ Dent hGmtt r Rittcr Wright, D. R Denrnty h u b R&%s Wright. M. N.

hugti in ~ o b i m ylodrirvirs h e h l a s Rocbusk Ywdc

RULES.

RULES SUSPENDED

The SPEAKER The Chair recognizes the majority leader. Mr. lTKIN. Mr. Speaker, I move now that we suspend the

rules of the House for immediate consideration of HR 41, which was just reported from the Rules Committee.

On the question, - Will the House agree to the motion?

The following roll call was reconkt . YEAS-201

Ac& F.rg0 Lintoa Adolph Farma Lloyd Allen Fes h k -11 Fichtcr L p h arm*^ Fl@e Maitland Baker Flick Maodmino mq F-o Mark& Ballisto Gamble Marsica Bebkc-Jones Cannon Marland Mardi Gejn Mayemik ~ h t i George ~cc.11 - B i d i a Galach Mffieehan Bilhap Gigliatti McNally B l m Gladeck Melio Boye. Godrhall M e r r ~ . B m Goniaer Mishlwic Bunt Gruilm Miconis Bush Glvppo Mihnlish Butkavitz Haluska Miller Buxfon Hanna Mulphy Clltagirone Harley Nailor Oppsbianu Hasay Nickol Om Heckler N yse Cuoae Hennessey O'Brien Cawlcy Hmnao O'Donnell

g E c k H d e y Oliver Hess Penel

Civm Hugh- PeSn ClarL Hutchinson Pplrana ClYrner ltkin Petrone Cohen, L. I. ladlowiec Ppltit Coheo, M. J a m Phillips Cdsfella Jarolin Piccola Cola~zu, Ja?qhepha Pistella Comdl Kaiser Pitts Conigan Kasvnic Plattr Cowell 9% Kella Preston

Kenney Raymund c u n ~ King Reber Daley Kirkland Rcinard Dehca Krebs Kishanlx,n

Santoni Satha Saumum Saylor k b Schder Scrimenti Swmel Ssnfini Smith, B. Smith. S. H. Snyder, D. W. Stsback stairs Steelman steighner Steil Stem Stder Stish StriUmstter SNrla surra Tangreni Taylor. E. Z. Taylor. J. Thomas Tigue Tomlinm Trello Tnsh T N ~ Tulli Uliana Vance Van Home Vean Vilali Waugh Williams Wogan

D " b n Ledaa Rohra zUp Egolf Lee Ra=Y E v m Lsh m l e ~ Dew- Fairchild Legavik Rudy

LevdansLy s m

~ a j t Ry.n

NOT VOTING1

Mundy

EXCUSE&I

Olasz

A majority of the members elected to the House having voted in the affirmative, the question was determined in the affirmative and the motion was agreed to.

RESOLUTION

Mrs. TAYLOR called up HR 41, PN 950, entitled:

A Resolution designating April 1993 a s "Pennsylvania Organ and Tissue Donor Awareness Month."

On the questio~ Will the House adopt the resolution?


YEAS-199

Awsh F- Lloyd Adolph Fee Lufylr Allen Fichter Lyoch -1 Fleagle M a i t l d h r w g Flick Mandmino Baker F m n Mar*& Bdcy Cannon Maria, BaUirto Geist M a h d Wko-Jones George Mayemik Belsrdi Gerlnch McCalI Belfanti G ig l i d McGeehan Bimrlio Gladcck Melio Bishop Godrhnll Merry B1.m Oardner Michlovlc BOY- Otuilm Miconie Bmwn GWFQ Mihalieh Bunt Haluska Miller Bush Hanna Mundy Butkwitz Harley Murphy Buxton Hsay Nailor Calla@mne Heckler Nickol Cappabianca Hennessey N y ~ e Cam ilsrman O'Brien Carone Hershey O'Doonell Cawley Hpns Oliver Cessar rrugh- Peael Chadwick Hutchinson Pmci Civera Itkin Pplram Clark Jadlowiec Petroue Cohen. I.. 1. James Pettit Cohen. M. Jsmlin Phillip

s.ntMli sllher Savmvln slylor k h c e e k h d a s c r i m t i Smvncl Scnfini Smith, B. Smith. S. H. Snyder, D. W. St.b.Ek Stairs Steelran stei&ler Steil Stern Stetler Stish Striltmatter Sturla suna Tangmi Taylor. E. Z. Taylor. J. T h o r n Tigue Tomliom Trello T"ch


cdddh Jmpbs ~icsdr TW 1 Mr. GLADECK. Mr. Soeaker. I was out of mv seat when colainn Corndl -w Cawdl coy c w MY DcLvu Danpey Dent Damody

hvce Durhm EEdf E m s Fairshild Fajt pug0

Kairer K m " i c K d a K = 9 Kbg KirLland Krebs KuLovish Mmll. hub hughlin Lawlcrs Ledem Lee Leh Lesfwitz Lcvdsnsky Linm

NOT VOTING-3

ClYrnr Gamble McNally

The question was determined in the ffinnative, and the resolution was adopted.

ANNOUNCEMENT BY MAJORITY LEADER

The SPEAKER The Chair remgnks the majority leader for an announcement.

Mr. lTKIN. Mr. Speaker, there are no more votes to be taken on the floor of the House today. The members may leave, but before they leave, the adjournment motion will be to April 19.

Bemse we had told the members that we would be in session t o m o m , I am liberally interpreting the rules to allow amendments to be filed to bills to be considered on Monday the 19th by tomorrow at 2 o'clock. So if you want to W d e amendments to bills to be voted on Monday the 19th you may get them in as late as t o m o m at 2 o'clock.


VOTE CORRECTIONS

The SPEAKER The Chair recognizes the gentleman, Mr. Gmppo.

Mr. GRUF'PO. Thank you, Mr. Speaker I just wanted to correct my vote.^ I had been recorded in the negative on the final passage of

SB 1. I wanted to be recorded in the ~ositive. Thank vou. The SPEAKER. The Chair tha~& the gentleman ;or the

correction of the record, and his remarks will be spread upon the record.

The Chair recognizes the gentleman, Mr. Gladeck.

the Buxton amendment was voted and bad I been there, I would have voted in the affymative. Thank you.

The SPEAKER TIE Chair thanks the gentleman. His remarks will be spread upon the r e w d

C The gentleman. Mr. Gannon, is recognized Mr. GANNON. Mr. Speaker, on HB 559 1 was not

recorded I w d d like to be recorded in the affumative. The SPEAKER The Chair thanks the gentleman. His

rema~ks will be spread upon the record.

BILL REMOVED FROM TABLE

The SPEAKER The Chair recognizes the majority leader. Mr. KKJN. Mr. Speaker, I move that HB 398 be taken

from the table and placed on the active calendar.


BILL RECOMMITTED

The SPEAKER The Chair r ecqnkx the majority leader. Mr. lTKIN. Mr. Speaker, I move that HB 398 be

recommitted to the Appropriations Committee.


HOUSE BILLS INTRODUCED AND REFERRED

No. 1090 By Representatives FREEMAN, CARONE, HUGHES, JOSEPHS, KUKOVICH, LEVDANSKY, PESCI, ROBINSON, VEON, DeWEESE, MARKOSEK, GIGLIOTI?, MELIO. BELFANTI, PISTELLA, SANTONI, COY, TRICH, LEDERER, DRUCE, HANNA, BEBKO- JONES, NAILOR, TRELLO, SAURMAN, STURLA, ARGALL, LAUGHLIN, SURRA, ROONEY, FAJT, STETLER, B. SMlTH, CAWLEY, RAYMOND, KASUNIC, KAISER, DENT, WILLIAMS, HALUSKA, STEELMAN, ROEBUCK, ROBERTS, COLAFELLA and TANGRETI?

An Act amending the act of March 10, 1949 (P.L.30, No.14). known as the Public School Code of 1949, providing for voter registration forms to be given to high school graduates.

Referred to Committee on STATE GOVERNMENT, March 30, 1993.

No. 1091 By Representatives LEVDANSKY, PESCI, ROBINSON, VEON, FREEMAN, CARONE, HUGHES, JOSEPHS, KUKOVICH, DeWEESE, GORDNER, MARKOSEK, GIGLIO'ITI, MELIO, VAN HORNE, BELFANTI, PISTELLA, SANTONI, COY, HANNA, TRELLO, LAUGHLIN, SAURMAN, STURLA, SURRA, ROONEY, FAJT, STETLER, CAWLEY, KASUNIC,

t


KAISER, WILLIAMS. HALUSKA, STEELMAN. ROEBUCK, ROBERTS, TANGRETI1 and TRICH

An Act emending the act of March 30, 1937 (P.L.115, No.40), known as The First Class City Permanent Registration Act, providing for voter registration in fust class cities in conjunction with motor vehicle driver's license registration.


No. 1092 By Representatives LEVDANSKY, PESCI, ROBINSON, VEON, FREEMAN. CARONE, HUGHES, JOSEPHS, KUKOVICH, DeWEESE, GORDNER, MARKOSEK, GIGLIOlTI, MELIO, VAN HORNE, BELFANTI. PISTELLA. SANTONI. COY. HANNk

Boroughs, Towns, and ~ownsh~~s~~rohibitin~tbe use of registration lists for jury selection or tax collection purposes.


No. 1095 By Representatives CARONE, HUGHES, JOSEPHS, KUKOVICH, LEVDANSKY, PESCL ROBINSON, WON, FREEMAN, DeWEESE, MARKOSEK, GIGLIO'ITI, MELIO, BELFANTI, PISTELLA, SANTONI, LEDERER, LEE, HANNA, TRELLO, SAURMAN, ARGALL, LAUGHLIN, SURRA, ROONEY, FAJT, CAWLEY, RAYMOND, KAISER, SCHEETZ, HERMAN, WILLIAMS, HALUSKA, TULLI, STEELMAN, STURLA, ROEBUCK, ROBERTS,

TRELLO, LAUGHLIN, 's~mwwi; ST&LA, sURRA, ROONEY, FAJT, STETLER, CAWLEY, KASUNIC, KAISER, WILLIAMS, HALUSKA, STEELMAN, ROEBUCK, ROBERTS, TANGRElTI and TRICH

Referred to Committee on STATE GOVERNMENT, March 30, 1993. No. 1096 By Representatives HUGHES, JOSEPHS,

KUKOVICH, LEVDANSKY, PESCI, ROBINSON. VEON,

MMLINSON and TANG RE TI^

An Act amending the act of March 30,1937 (P.L.115, No.40). known as The First Class City Permanent Registration Act, extending the time for canceling a registration; and prohibiting the

- An Act amending the act of April 29, I937 (P.L.487, No.] 15), known as The Permanent Registration Act for Cities of the Second Class, Cities of the Second Class A, Cities of the Thud Class, Boroughs, Towns, and Townships, providing for voter registration . in conjunction with motor vehicle driver's license registration.

No. 1093 By Representatives CARONE, HUGHES, JOSEPHS, KUKOVICH, LEVDANSKY, PESCI, ROBINSON, WON, FREEMAN, DeWEESE, MARKOSEK, GIGLIO'ITI, MELIO, BELFANTI, PISTELLA, SANTONI, LEE, HANNA, TRELLO, SAURMAN, ARGALL, LAUGHLIN, SURRA, ROONEY, - FAJT, CAWLEY, RAYMOND, KAISER, SCHEETZ, HERMAN, WILLIAMS, HALUSKA, TULLI, STEELMAN, ROEBUCK, ROBERTS, TOMLINSON, TANGRETn and

a LEDERER

use of information or lists of registered electors from the general register, the district registers or street lists forjury selection or tax collection purposes.

Referred to Committee on STATE GOVERNMENT, ~~~h 30, 1993.

An Act amendiin Title 42 (ludiciarv and Judicial Procedure) of the Pennsylvania Conso1idat;d statutes, providing for selection of prospective jurors.


No. 1094 By Representatives CAROW HUGHES, JOSEPHS, KUKOVICH, LEVDANSKY, PESCI, ROBINSON, VEON, FREEMAN, DeWEESE, MARKOSEK, GIGLIOTTI, MELIO, BELFANTI, PISTELLA, SANTONI, LEDERER, LEE, HANNA, TRELLO, SAURMAN, ARGALL, LAUGHLIN, SURRA, ROONEY, FAJT, CAWLEY, RAYMOND, KAISER, SCHEETZ, HERMAN, WILLIAMS, HALUSKA, TULLI, STEELMAN, STURLA, ROEBUCK, ROBERTS, TOMLINSON and TANGRETTI

An Act amending the act of April 29, 1937 (P.L.487, No.1 l S), known as The Permanent Registration Act for Cities of the Second Class, Cities of the Second Class A, Cities of the Third Class,

i FREEMAN, CARONE, DeWEESE, MARKOSEK, 1 GIGLIOTTI, MELIO, VAN HORNE, BELFANTI,

PISTELLA, SANTONI, COY, HANNA, BEBKO-JONES, TRELLO, SAURMAN, STURLA, LAUGHLIN, SURRA, ROONEY, FAJT, STE'ILER, CAWLEY, KASUNIC, KAISER, WILLIAMS, HALUSKA, STEELMAN, ROEBUCK, ROBERTS, TANGRE'ITI and TRlCH

An Act amending the act of June 3,1937 (P.L.1333, No.320), known as the Peunsylvania Election Code, providing for voter registration in certain State offices.


No. 1097 By Representatives JOSEPHS, KUKOVICH, LEVDANSKY, PESCI, ROBINSON, VMN, FREEMAN, CARONE, HUGHES, DeWEESE, MARKOSEK, G I G L I O ~ MELIO, BELFANTI, PISTELLA, SANTONI. COY, HANNA, BEBKO-JONES, NAILOR, TRELLO, LAUGHLIN, SAURMAN, STURLA, SURRA, ROONEY, FAJT, CAWLEY, KASUNIC, WILLIAMS, HALUSKA, STEELMAN, ROBERTS, TOMLINSON and TANGRETTI

An Act amendig the act of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election Code, providing for a procedure for certain electors.


No. 1098 By Representatives KUKOVICH, LEVDANSKY, PESCI, ROBINSON, VEON, FREEMAN,


CARONE, HUGHES. JOSEPHS. DeWEESE, MARKOSEK, GIGLIOTTI, BELFANII, COY, HANNA, BEBKOJONES, TRELLO, LAUGHLIN, SAURMAN, STURLA, SURRA, ROONEY, FAIT, STETLER, CAWLEY, WILLIAMS, STEELMAN, TANGREm and PISTELLA

An Act amendinn the act of June 3. 1937 IP.L.1333. No.320). known as the ~enn$lvanta Election Code. f&her pro~ldinaf& rules lor detcrmmmg restdence lor purposes of registermg to vote or voting.


No. 1099 By Representatives PESCI, ROBINSON, VEON. FREEMAN, CARONE, HUGHES, JOSEPHS, KUKOVICH, LEVDANSKY, DeWEESE, GORDNER, MARKOSEK, GIGLIO'ITI, MELIO, VAN HORNE, BELFANTI, PISTELLA, SANTONL HANNA, TRELM, LAUGHLIN, SAURMAN, STURLA, SURRA, ROONEY, FATT, STETLER, CAWLEY, RAYMOND, KASUNIC, KAISER, HERMAN, HALUSKA, STEELMAN, ROEBUCK, ROBERTS, FLICK, TANGRETTI and DRUCE

An Act amending the act of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election Code, further providing for absentee ballots.


No. 1100 By Representatives ROBINSON, WON, FREEMAN. CARONE. HUGHES. JOSEPHS. KUKOVICH. LEVDANSKY, PESCI; D~WEESE, M A R K ~ E K , GIGLIOTTI, MELIO, BELFANTI, PISTELLA, HANNA, TRELM, LAUGHLIN, SAURMAN, STURLA, SURRA, ROONEY, B. SMITH, CAWLEY, KAISER, WILLIAMS, STEELMAN, ROEBUCK, TANGRETTI and TRICH

An Act amending the act of March 30, 1937 (P.L.115, No.40), known as The First Class City Permanent Registration Act, extending the time for canceling a registration.


No. 1101 By Representatives ROBINSON, VEON, FREEMAN. CARONE. HUGHES. JOSEPHS. KUKOVICH. LEVDANSKY, PESCI; D~WEESE, MARKOSEK, GIGLIOTTI, MELIO, BELFANTI, PISTELLA, HANNA, TRELM, LAUCiHLIN, SAURMAN, STURLA, SURRA, ROONEY, B. SMITH, CAWLEY, KAISER, WILLIAMS, STEELMAN, ROEBUCK, TANGRElTl and TRICH

An Act amend~ng the act of Aprll 29, I937 (P.L.487, No.] 15). known as The Permanent Reglstratlon Act for Cities of the Second Class, Cities of the Second Class A, Clttes of the Third Class, Boroughs, Towns, and Townships, extending the tlme far canceling a reglstrauon.

Referred to (:ommittcc on S'1'A'1~li GOVERNMENT, March 30, 1993.

No. 1102 By Representatives VEON, CARONE, HUGHES, JOSEPHS, KUKOVICH, LEVDANSKY, PESCI, ROBINSON, FREEMAN. DeWEESE, MARKOSEK, GIGLIOlTI, BELFANTI, SAh'TOW COY, TRELLO, LAUGHLIN. SAURMAN. STURLA, SURRA, ROONEY. FAIT, STETLER, CAWLEY, WILLIAMS, STEELMAN, COLAFELLA, TANGRETIT, TRICH and LEDERER

An Act providing for election day registration; and providing penalties.


SENATE BILL FOR CONCURRENCE

The clerk of the Senate, being intrcduced, presented the following bill for concurrence:

Referred to Committee on AGRICULTURE AND RURAL AFFAIRS, March 30, 1993.

BILLS REPORTED FROM COMMITTEE, CONSIDERED FIRST TIME, AND TABLED

EB 461, PN 512 By Rep. PETRARCA An Act amending Title 75 (Vehicles) of the Pennsylvania

Consolidated Statutes, regulating child passenger restraint systems.

TRANSPORTATION. w EB 576, PN 1179 (Amended)

By Rep. PETRARCA An Act amending Title 75 (Vehicles) of the Pennsylvania

Consolidated Statutes, further providing for notification of the department by registrants and operators of changes in addresses.

TRANSPORTATION.

HB 734, PN 798 By Rep. PETRARCA An Act designating a bridge in Union Township, Lawrence

County, as the Richard E. Rentz Memorial Bridge.

TRANSPORTATION.

HI 829, PN 1180 (Amended) By Rep. PETRARCA

An Act designating a bridge over the Allegheny River in Allegheny County, as the Jonathan Hulton Memorial Bridge.

TRANSPORTATION.

HB 878, PN 957 By Rep. PETRARCA i

An Act amending Title 75 (Vehicles) of the Pennsylvania Consolidated Statutes, providing for suspensions for offenses involving controlled substances, for certain out-of-State documentations and for reports by courts; and making a repeal.

TRANSPORTATION.


HB 986. PN 1070 Bv Reu. PETRARCA I . . An Act amending Title 75 (Vehicles) of the Pennsylvania

Consolidated Statutes, further providing for the defmition of "passenger car."

TRANSPORTATION. I SB 295, PN 932 (Amended)

By Rep. PETRARCA An Act amending Title 75 (Vehicles) of the Pennsylvania - Consolidated Statutes, further providing for the transportation of

school children on certain chartered buses and for the lennth of projecting loads.

TRANSPORTATION

SB 383, PN 406 By Rep. PETRARCA An Act amending Title 75 (Vehicles) of the Pennsylvania

Consolidated Statutes, providing additional exceptions to record disclosure limitations.

TRANSPORTATION. I . BILLS PASSED OVER I The SPEAKER Without objection, all remaining bills on

w today's calendar will be passed over. The Chair hears no objection.

ADJOURNMENT I The SPEAKER The Chair recognizes Representative Tim

Hennessey of Chester County. Mr. HENNESSEY. Thank you, Mr. Speaker. So that the daily record will reflect what has already been

anticipated by our members, I move that this House now adjourn until Monday, April 19, 1993, at 1 p.m., e.d.t., unless . sooner recalled by the Speaker.

The SPEAKER The Chair very graciously thanks Repre- sentative Hennessey. .

On the question, Will the House agree to the motion? Motion was agreed to, and at 6:03 p.m., e.s.t., the House

adjourned.