SENATE AMENDED PRIOR PRINTER'S NOS. 2112, 2126, 2314, PRINTER'S NO. 3710 2738
No. 1672 Session of 1983
INTRODUCED BY SWEET, RAPPAPORT, SPENCER, HAGARTY, LASHINGER, COY, O'DONNELL, MANDERINO, EVANS, MAIALE, HOEFFEL, WOGAN, KASUNIC, BURD, KUKOVICH, FATTAH, WOZNIAK, BELFANTI, TRUMAN, WACHOB, CALTAGIRONE, WAMBACH, PISTELLA, KOSINSKI, RYBAK, KOWALYSHYN, MRKONIC, PHILLIPS, MORRIS, CAWLEY, TIGUE, MICHLOVIC, GEIST, PRATT, CIMINI, JOHNSON, DeLUCA, COLAFELLA, VAN HORNE, OLASZ, DEAL, GALLAGHER, WIGGINS, LINTON, OLIVER, CARN, HARPER, BARBER, LESCOVITZ, DOMBROWSKI, DALEY, LEHR, ARTY, BELOFF, PETRARCA, TRELLO, McVERRY, SAURMAN, D. R. WRIGHT, PETRONE, MAYERNIK, AFFLERBACH, E. Z. TAYLOR, PRESTON, DAWIDA, BLAUM, WILLIAMS, LEVIN, CORDISCO, R. C. WRIGHT, REBER AND STEVENS, OCTOBER 26, 1983
SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, NOVEMBER 19, 1984
AN ACT 1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled <-- 2 "An act providing for and reorganizing the conduct of the 3 executive and administrative work of the Commonwealth by the 4 Executive Department thereof and the administrative 5 departments, boards, commissions, and officers thereof, 6 including the boards of trustees of State Normal Schools, or 7 Teachers Colleges; abolishing, creating, reorganizing or 8 authorizing the reorganization of certain administrative 9 departments, boards, and commissions; defining the powers and 10 duties of the Governor and other executive and administrative 11 officers, and of the several administrative departments, 12 boards, commissions, and officers; fixing the salaries of the 13 Governor, Lieutenant Governor, and certain other executive 14 and administrative officers; providing for the appointment of 15 certain administrative officers, and of all deputies and 16 other assistants and employes in certain departments, boards, 17 and commissions; and prescribing the manner in which the 18 number and compensation of the deputies and all other 19 assistants and employes of certain departments, boards and 20 commissions shall be determined," further providing for 21 provisions relating to crime victims' compensation;
1 reestablishing and continuing the Crime Victim's Compensation 2 Board; and making an editorial change. 3 AMENDING THE ACT OF MARCH 30, 1811 (P.L.145, NO.99), ENTITLED <-- 4 "AN ACT TO AMEND AND CONSOLIDATE THE SEVERAL ACTS RELATING TO 5 THE SETTLEMENT OF THE PUBLIC ACCOUNTS AND THE PAYMENT OF THE 6 PUBLIC MONIES, AND FOR OTHER PURPOSES," CREATING A DEFERRED 7 COMPENSATION BOARD; AND PROVIDING FOR DEFERRED COMPENSATION. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Section 477 of the act of April 9, 1929 (P.L.177, <-- 11 No.175), known as The Administrative Code of 1929, amended 12 December 10, 1976 (P.L.1305, No.287) and December 13, 1979 13 (P.L.519, No.114), is amended to read: 14 Section 477. Definitions.--So far as it relates to the crime 15 victim's compensation provisions, the following terms shall be 16 defined as: 17 "Board" means the Crime Victim's Compensation Board. 18 "Claimant" means the person filing a claim pursuant to this 19 act. 20 "Crime" means an act committed in Pennsylvania which, if 21 committed by a mentally competent, criminally responsible adult, 22 who had no legal exemption or defense, would constitute a crime 23 as defined in and proscribed by Title 18 of the "Pennsylvania 24 Consolidated Statutes," (relating to crimes and offenses) or any <-- 25 other penal law of the Commonwealth ENUMERATED IN THE ACT OF <-- 26 APRIL 14, 1972 (P.L.233, NO.64), KNOWN AS "THE CONTROLLED 27 SUBSTANCE, DRUG, DEVICE AND COSMETIC ACT": Provided, however, 28 That no act involving the operation of a motor vehicle which 29 results in injury shall constitute a crime for the purpose of 30 this act unless such injury was intentionally inflicted through 31 the use of a motor vehicle. 32 "Family," when used in reference to a person, shall mean (i) 33 anyone related to such person within the third degree of 19830H1672B3710 - 2 -
1 consanguinity or affinity, (ii) anyone maintaining a common-law 2 relationship with such person, or (iii) anyone residing in the 3 same household with such person. 4 "Intervenor" shall mean a person who goes to the aid of 5 another and suffers bodily injury or death as a direct result of 6 acting not recklessly to prevent the commission of a crime, or 7 to lawfully apprehend a person reasonably suspected of having 8 committed such crime, or to aid the victim of such crime. 9 "Local law enforcement agency" means a police department of a 10 city, borough, incorporated town or township. 11 "Loss of earnings" in addition to its ordinary meaning, shall 12 mean the loss of the cash equivalent of a social security 13 payment where social security is the sole PRIMARY source of the <-- 14 victim's income and where the victim is deprived of the money as 15 a direct result of a crime. 16 "Out-of-pocket loss" means the unreimbursed and 17 unreimbursable expenses or indebtedness incurred for medical 18 care, nonmedical remedial care and treatment rendered in 19 accordance with a religious method of healing as approved by the 20 board, or other services, including psychological counseling, 21 reasonably necessary as a result of the injury upon which the 22 claim is based and for which the claimant either has paid or is 23 liable to include expenses for physical examinations and 24 materials used to obtain evidence. In no case shall property 25 damages or compensation for pain and suffering be included. 26 "Victim" shall mean a person, other than the alleged 27 offender, who suffers bodily injury [or], death or the loss of 28 the proceeds of a social security payment which is the sole <-- 29 PRIMARY income of the recipient as a direct result of a crime. <-- 30 Section 2. Section 477.1(e) of the act, added July 9, 1976 <-- 19830H1672B3710 - 3 -
1 (P.L.574, No.139), is amended to read: 2 Section 477.1. Crime Victim's Compensation Board.--* * * 3 (e) [The members of the board shall devote their full time 4 and capacity to their duties. The members of the board shall 5 receive an annual starting salary of twenty-five thousand 6 dollars ($25,000). Thereafter they shall receive an annual 7 salary to be fixed by the Executive Board of the Commonwealth 8 within the amount made available by appropriation. The chairman 9 shall receive five hundred dollars ($500) additional 10 compensation per annum.] The chairman shall devote his full time 11 and capacity to his duties. The remaining members of the board 12 shall serve on a part-time basis. The chairman shall receive a 13 starting salary of twenty-five thousand five hundred dollars 14 ($25,500). Thereafter he or she shall receive an annual salary 15 to be fixed by the Executive Board of the Commonwealth within 16 the amount made available by appropriation. The remaining 17 members of the board shall receive a per diem salary of one 18 hundred dollars ($100) per day based on guidelines set forth by 19 the Executive Board plus reasonable expenses for travel, lodging 20 and meals. 21 Section 3. Section 477.2(a) 2. SECTION 477.2 of the act, <-- 22 added July 9, 1976 (P.L.574, No.139), is amended and a <-- 23 subsection is added BY ADDING A SUBSECTION to read: <-- 24 Section 477.2. Powers and Duties of Board.--The board shall 25 have the following powers and duties: 26 (a) To establish and maintain a principal office in or near <-- 27 Harrisburg [and such other offices within the Commonwealth as it 28 may deem necessary]. 29 * * * 30 (l) To administer the Crime Victim's Compensation Fund, 19830H1672B3710 - 4 -
1 created under 42 Pa.C.S. § 1725.3 (relating to mandatory costs), 2 for the payment of claims filed under this act and for all 3 reasonable and necessary administrative expenses. 4 Section 4 3. Section 477.3 of the act, added July 9, 1976 <-- 5 (P.L.574, No.139), is amended to read: 6 Section 477.3. Persons Eligible for Compensation.--(a) 7 Except as provided in subsection (b) of this section, the 8 following persons shall be eligible for compensation: 9 (1) A victim. 10 (2) An intervenor. 11 (3) A surviving spouse, parent or child of a deceased victim 12 or intervenor. 13 (4) Any other person dependent for his principal support 14 upon a deceased victim or intervenor. 15 (5) Any person who legally assumes the obligation or who <-- 16 voluntarily pays the funeral or burial expenses incurred as a 17 direct result of the crime. 18 (5) ANY PERSON RELATED TO THE VICTIM WITHIN THE THIRD DEGREE <-- 19 OF CONSANGUINITY OR AFFINITY WHO ASSUMES THE OBLIGATION OR WHO 20 PAYS THE FUNERAL OR BURIAL EXPENSE INCURRED AS A DIRECT RESULT 21 OF THE CRIME. 22 (b) A person who is criminally responsible for the crime 23 upon which a claim is based or an accomplice of such person 24 shall not be eligible to receive compensation with respect to 25 such claim. A member of the family of the person who [allegedly] 26 committed the crime shall not be eligible [under any 27 circumstances] if, at the rendering of a verdict in the criminal <-- 28 proceeding, the offender is living in the same household as the 29 victim and will benefit from the award. The Attorney General may 30 sue the offender or the victim or both to recover the award if 19830H1672B3710 - 5 -
1 the offender at any time benefits from the award. 2 (c) A person who is not a resident of Pennsylvania at the 3 time of occurrence of the crime upon which the claim is based, 4 shall be eligible for compensation only if the law of the state 5 of which he is a resident at the time of occurrence of the crime 6 upon which the claim is based provides for compensation to 7 Pennsylvania residents who are victims of crime in such state. 8 (d) If the victim's state of residence provides payments to 9 its residents injured in Pennsylvania, primary responsibility 10 for payment to the victim shall rest with the victim's state of 11 residence. 12 Section 5 4. Section 477.5 of the act is repealed. <-- 13 Section 6 5. Section 477.9 of the act, added July 9, 1976 <-- 14 (P.L.574, No.139) and amended December 13, 1979 (P.L.519, 15 No.114), is amended to read: 16 Section 477.9. Awards.--(a) No award shall be made unless 17 the board or board member, as the case may be, finds by a 18 preponderance of the evidence that: 19 (1) A crime was committed. 20 (2) The person injured or killed was a victim or intervenor 21 as defined in section 477. 22 (3) Such crime was promptly reported to the proper 23 authorities; and in no case may an award be made where the 24 record shows that such report was made more than seventy-two 25 hours after the occurrence of such crime unless the board, for 26 good cause shown, finds the delay to have been justified. The 27 board, upon finding that any claimant, victim or intervenor has 28 not fully cooperated with all law enforcement agencies, may deny 29 or withdraw any award, as the case may be. 30 (b) Any award made pursuant to [sections 477 to 477.15] the 19830H1672B3710 - 6 -
1 provisions of this act shall be in an amount not exceeding out- 2 of-pocket loss, together with loss of past, present or future 3 earnings or support resulting from such injury. In no case shall 4 the total amount of an award exceed [twenty-five thousand 5 dollars ($25,000)] thirty-five thousand dollars ($35,000). 6 (c) Any award made for loss of earnings or support shall, 7 unless reduced pursuant to other provisions of this act, be in 8 an amount equal to the actual loss sustained: Provided, however, 9 That no such award shall exceed [two hundred dollars ($200)] the 10 average weekly wage FOR ALL PERSONS COVERED BY THE ACT OF <-- 11 DECEMBER 5, 1936 (2ND SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS 12 THE "UNEMPLOYMENT COMPENSATION LAW," in Pennsylvania as 13 determined annually by the Department of Labor and Industry at <-- 14 the time the crime was committed for each week of lost earnings 15 or support: And, provided further, That the aggregate award for 16 such loss shall not exceed [ten thousand dollars ($10,000)] 17 fifteen thousand dollars ($15,000) except that in the case of 18 death of a victim or intervenor, the aggregate award shall not 19 exceed [fifteen thousand dollars ($15,000)] twenty thousand 20 dollars ($20,000). 21 (d) If there are two or more persons entitled to an award as 22 a result of the death of a victim or intervenor, the award shall 23 be apportioned among the claimants. 24 (e) Except for [claims involving] any payments or proceeds 25 that are specifically denominated as compensation for 26 dismemberment or loss of an eye, any award made pursuant to this 27 act shall be reduced by the amount of any payments received or 28 to be received by the claimant as a result of the injury (i) 29 from or on behalf of the person who committed the crime, (ii) 30 under any insurance programs including those mandated by law, 19830H1672B3710 - 7 -
1 (iii) under any contract of insurance wherein the claimant is 2 the insured beneficiary, (iv) from public funds, or (v) as an 3 emergency award pursuant to section 477.8 of this act. 4 (f) In determining the amount of an award, the board or 5 board member, as the case may be, shall determine whether, 6 because of his conduct, the victim or intervenor contributed to 7 the infliction of his injury except where the crime was rape in 8 which case the conduct of the victim shall not be considered, 9 and the board or board member shall reduce the amount of the 10 award or deny the claim altogether in accordance with such 11 determination: Provided, however, That the board or board 12 member, as the case may be, may disregard for this purpose the 13 contribution of the intervenor to his own injury where the 14 record shows that such contribution was attributed to efforts by 15 an intervenor as set forth in section 477. 16 Section 7 6. Section 477.13 of the act, added July 9, 1976 <-- 17 (P.L.574, No.139), is amended to read: 18 Section 477.13. Restitution.--To the extent that restitution 19 is ordered pursuant to any other existing law, either prior to 20 or subsequent to the making of an award by this board, such 21 restitution shall be paid to the [Commonwealth] Crime Victim's 22 Compensation Fund created under 42 Pa.C.S. § 1725.3 (relating to 23 mandatory costs) to the extent of the award by the board. 24 Section 8 7. Section 477.17 of the act, added December 13, <-- 25 1979 (P.L.519, No.144), is amended to read: 26 Section 477.17. Responsibilities of Local Law Enforcement 27 Agencies.--(a) All local law enforcement agencies shall insure 28 that all of its officers and employes are familiar with crime 29 victim's compensation as provided for in sections 477 through 30 477.17 of this act. Instruction concerning crime victim's 19830H1672B3710 - 8 -
1 compensation shall be made a part of the training curriculum for 2 all trainee officers. 3 (b) Local law enforcement agencies shall advise the victims 4 of crimes reported to it of the availability of crime victim's 5 compensation as provided by this act. The term "victim" as used 6 in this subsection shall be a victim as defined by this act. The 7 notice required under this subsection shall be in writing and 8 shall include the following paragraph: 9 "If you have sustained physical injury as a direct result 10 of a crime of violence, or are legally dependent for support 11 upon a person who has sustained physical injury or death as a 12 direct result of a crime of violence, or, in the event of a 13 death caused by a crime of violence, you have legally assumed 14 or voluntarily paid the medical or burial expenses incurred 15 as a direct result thereof, you may qualify for 16 indemnification by the State of Pennsylvania for the out-of- 17 pocket wages, medical or burial expenses which you have 18 incurred as a result of the crime. Claims must be filed with 19 the Crime Victim's Compensation Board for the State of 20 Pennsylvania. For further information regarding this program, 21 please contact: 22 (Name, business address and telephone 23 number of the local law enforcement 24 agency) 25 or 26 Crime Victim's Compensation Board 27 [Department of Justice] 28 Office of General Counsel 29 Harrisburg, Pennsylvania 30 Important: The statute provides that, absent certain 19830H1672B3710 - 9 -
1 extenuating circumstances, a claimant has one year from the 2 date of the crime to file his claim with the Crime Victim's 3 Compensation Board." 4 (c) The written notification provided for in subsection (b) 5 shall be accompanied by [three copies] one copy of the 6 application form for crime victim's compensation. These forms 7 shall be supplied by the Crime Victim's Compensation Board to 8 all local law enforcement agencies. The record of the date and 9 address of all letters of notification shall be maintained by 10 every local law enforcement agency. 11 (d) Any officer of a local law enforcement agency whose 12 duties include the investigation of crimes may notify victims or 13 their families of the availability of compensation under this 14 act by giving them a card or sheet bearing the paragraph as 15 quoted in subsection (b) above. A record of such personal notice 16 shall be maintained by the local law enforcement agency. 17 (e) In municipalities which do not have a local law 18 enforcement agency, the board shall by rule establish procedures 19 whereby it, together with the State Police, shall give the 20 notice to victims of crimes as provided in this section. 21 Section 9 8. Section 477.18 of the act, added December 14, <-- 22 1982 (P.L.1213, No.280), is amended to read: 23 Section 477.18. Distribution of Moneys Received as a Result 24 of the Commission of Crime.--(a) Every person, contracting with 25 any person or the representative or assignee of any person[,] 26 accused or convicted of a crime in this Commonwealth, with 27 respect to the reenactment of such crime, by way of a movie, 28 book, magazine article, tape recording, phonograph record, radio 29 or television presentation, live entertainment of any kind, or 30 from the expression of [such] the accused or convicted person's 19830H1672B3710 - 10 -
1 thoughts, feelings, opinions or emotions regarding such crime, 2 shall notify the board of the contractual arrangements and shall 3 pay over to the board any moneys which would otherwise, by terms 4 of such contract, be owing to the person so accused or convicted 5 or his representatives. The board shall deposit such moneys in 6 an escrow account for the benefit of and payable to any [victim 7 of crimes committed by such person, provided that such person is 8 eventually convicted of the crime] eligible person and provided 9 [further] that such [victim] eligible person, within five years 10 of the date of the [crime] establishment of such escrow account, 11 brings a civil action for damages on any legal theory in a court 12 of competent jurisdiction and recovers a money judgment against 13 such accused or convicted person or his representatives[.] and 14 provided further that in the case of an accused person, such 15 person is eventually convicted. However, the accused or 16 convicted person may voluntarily request that the board make 17 payments to eligible persons who have not recovered money 18 judgments. In the case of an accused making such a voluntary 19 request, no payment shall be made until such person is convicted 20 and, upon conviction, the trial judge presiding over the case 21 shall determine the proportions of available escrow moneys 22 payable to each eligible person and shall certify those amounts 23 to the board. In the case of a convicted person making such a 24 voluntary request, the board shall determine the proportion of 25 available escrow moneys payable to eligible persons. 26 (b) (1) As used in this section, the term "eligible person" 27 shall include any of the following persons: 28 (i) A victim of the particular crime in question. 29 (ii) An intervenor in such crime. 30 (iii) A surviving spouse, parent or child of a deceased 19830H1672B3710 - 11 -
1 victim of, or intervenor in, such crime. 2 (iv) Any other person dependent for his principal support 3 upon a deceased victim of, or intervenor in, such crime. 4 No person who is criminally responsible for the crime in 5 question or was an accomplice of the person who is criminally 6 responsible shall be an eligible person. 7 (2) As used in this section, the term "convicted" includes 8 conviction by entry of a plea of guilty or nolo contendere, 9 conviction after trial, and a finding of not guilty due to 10 insanity or of guilty but mentally ill. 11 [(b) The] (c) Upon receiving escrow moneys, the board shall 12 notify all eligible persons that the escrow money is available 13 to satisfy money judgments or that the accused or convicted has 14 voluntarily requested that payments be made in the absence of a 15 money judgment. If, after a good faith effort, the board is 16 unable to give personal notice to each such eligible person, the 17 board, at least once every six months for five years from the 18 date it receives such moneys, shall cause to have published a 19 legal notice in newspapers of general circulation in each county 20 advising such [victims] eligible persons that such escrow moneys 21 are available to satisfy money judgments pursuant to this 22 section or that the accused or convicted has voluntarily 23 requested that payments be made in the absence of a money 24 judgment. 25 [(c)] (d) Upon disposition of charges favorable to any 26 person accused of committing a crime, or upon a showing by such 27 person that five years have elapsed from the establishment of 28 such escrow account and further that no actions are pending 29 against such person pursuant to this section, the board shall 30 immediately pay over any moneys in the escrow account to such 19830H1672B3710 - 12 -
1 person. 2 [(d)] (e) Notwithstanding any inconsistent provision of law 3 and rules of civil procedure with respect to the timely bringing 4 of an action, the five-year period provided for in subsection 5 (a) shall not begin to run until an escrow account has been 6 established. 7 [(e) Notwithstanding the foregoing provisions of this 8 section,] 9 (f) No payment to eligible persons shall be made from the 10 escrow account without official certification by the trial judge 11 that the criminal charges have been adjudicated finally, 12 including the disposition of any appeal. However, the board 13 shall make payments from an escrow account to [any person 14 accused of crime] an accused person prior to final adjudication 15 of the criminal charges upon the order of a court of competent 16 jurisdiction after a showing by such person that such moneys 17 shall be used for the exclusive purpose of retaining legal 18 representation at any stage of the proceedings against such 19 person, including the appeals process. The amount authorized for 20 attorneys' fees, expert witnesses and other costs of litigation 21 shall be approved and certified to the board by the judge 22 presiding at the trial of the accused. 23 [(f)] (g) Any action taken by any person convicted of a 24 crime, whether by way of execution of a power of attorney, 25 creation of corporate entities or otherwise, to defeat the 26 purpose of this section shall be null and void as against the 27 public policy of this Commonwealth. 28 Section 10 9. This act shall constitute the legislation <-- 29 required to reestablish and continue an agency pursuant to the 30 requirements and provisions of the act of December 22, 1981 19830H1672B3710 - 13 -
1 (P.L.508, No.142), known as the Sunset Act. The Crime Victim's 2 Compensation Board is hereby reestablished and continued until 3 December 31, 1986. 4 Section 11 10. The provisions of sections 1 and 6 5 of this <-- 5 act shall apply to claims arising out of crimes committed on or 6 after the effective date of this act. 7 Section 12 11. This act shall take effect immediately. <-- 8 SECTION 1. SECTION VIII OF THE ACT OF MARCH 30, 1811 <-- 9 (P.L.145, NO.99), ENTITLED "AN ACT TO AMEND AND CONSOLIDATE THE 10 SEVERAL ACTS RELATING TO THE SETTLEMENT OF THE PUBLIC ACCOUNTS 11 AND THE PAYMENT OF THE PUBLIC MONIES, AND FOR OTHER PURPOSES," 12 AMENDED JULY 18, 1974 (P.L.472, NO.168), IS AMENDED TO READ: 13 SECTION VIII. AND BE IT FURTHER ENACTED BY THE AUTHORITY 14 AFORESAID, THAT THE STATE TREASURER SHALL PAY ALL GRANTS, 15 SALARIES, ANNUITIES, GRATUITIES, AND PENSIONS ESTABLISHED BY 16 LAW, AND MAKE ALL OTHER PAYMENTS WHICH ARE OR SHALL BE SO FIXED 17 BY LAW, THAT THE SUM TO BE PAID CANNOT BE AFFECTED BY THE 18 SETTLEMENT OF ANY ACCOUNT, NOR INCREASED NOR DIMINISHED BY THE 19 DISCRETIONARY POWERS OF THE AUDITOR-GENERAL AND STATE TREASURER; 20 PROVIDED HOWEVER, THAT IN RELATION TO PENSIONS PAYABLE UNDER 21 DECREES OF COURTS, THE STATE TREASURER MAY, IF HE DEEMS IT 22 PROPER, REFER THE SAID DECREES OR CERTIFICATES BACK TO THE COURT 23 FOR REVISION, STATING HIS REASONS THEREFOR: AND ALSO PROVIDED, 24 THAT THE TREASURER OR OTHER OFFICER IN CHARGE OF PAYROLLS FOR 25 THE STATE OR ANY COUNTY, CITY, TOWN OR OTHER POLITICAL 26 SUBDIVISION MAY MAKE SYSTEMATIC INVESTMENTS IN MUTUAL FUNDS, 27 SAVINGS ACCOUNTS OR GOVERNMENT BONDS OR MAKE PREMIUM PAYMENTS ON 28 LIFE INSURANCE OR ANNUITY CONTRACTS TO ANY INSTITUTION OR 29 COMPANY LICENSED AND AUTHORIZED IN ACCORDANCE WITH THE RULES AND 30 REGULATIONS PROMULGATED BY THE APPROPRIATE STATE AGENCIES TO 19830H1672B3710 - 14 -
1 ACCEPT DEPOSITS OR SELL SUCH PRODUCTS IN THIS STATE FOR THE 2 PURPOSE OF FUNDING A DEFERRED COMPENSATION PROGRAM FOR EMPLOYES. 3 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ: 4 SECTION VIII.2. (1) THE COMMONWEALTH OF PENNSYLVANIA, AND 5 ANY POLITICAL SUBDIVISION OF THIS COMMONWEALTH, MAY ESTABLISH 6 ELIGIBLE DEFERRED COMPENSATION PLANS FOR THEIR ELECTED OR 7 APPOINTED OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS WHO PERFORM 8 SERVICES FOR THE COMMONWEALTH OR A POLITICAL SUBDIVISION, 9 PURSUANT TO SECTION 457 OF THE INTERNAL REVENUE CODE (26 U.S.C. 10 § 457). 11 (2) ANY ELIGIBLE DEFERRED COMPENSATION PLANS ESTABLISHED FOR 12 COMMONWEALTH OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS WHO 13 PERFORM SERVICES FOR THE COMMONWEALTH, SHALL BE ESTABLISHED AND 14 ADMINISTERED BY THE OFFICE OF ADMINISTRATION. 15 (3) ANY ELIGIBLE DEFERRED COMPENSATION PLANS ESTABLISHED FOR 16 THE OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS PERFORMING SERVICES 17 FOR A POLITICAL SUBDIVISION SHALL BE ESTABLISHED AND 18 ADMINISTERED BY THE GOVERNING BODY OF THE POLITICAL SUBDIVISION. 19 (4) IN ORDER TO ESTABLISH AND ADMINISTER ELIGIBLE DEFERRED 20 COMPENSATION PLANS THE POWERS AND DUTIES OF THE OFFICE OF 21 ADMINISTRATION OR THE GOVERNING BODY OF A POLITICAL SUBDIVISION 22 SHALL INCLUDE, BUT NOT BE LIMITED TO: 23 (I) ESTABLISHING PROCEDURES WHEREBY ELIGIBLE INDIVIDUALS MAY 24 ELECT TO PARTICIPATE IN, OR WITHDRAW FROM PARTICIPATION IN, A 25 PLAN AND WHEREBY SUCH INDIVIDUALS MAY DESIGNATE THE AMOUNT OF 26 COMPENSATION TO BE DEFERRED; 27 (II) DEDUCTING FROM THE COMPENSATION OF ELIGIBLE INDIVIDUALS 28 AMOUNTS TO BE CONTRIBUTED TO A PLAN; 29 (III) SELECTING PRIVATE FINANCIAL INSTITUTIONS, INSURANCE 30 COMPANIES AND OTHER ORGANIZATIONS WHICH WILL BE QUALIFIED AS 19830H1672B3710 - 15 -
1 MANAGERS ON BEHALF OF THE COMMONWEALTH, OR A POLITICAL 2 SUBDIVISION, OF FUNDS CONTRIBUTED TO A PLAN ON BEHALF OF ANY 3 ELIGIBLE INDIVIDUAL, AND WHICH WILL OFFER ELIGIBLE INDIVIDUALS 4 OPTIONS CONCERNING THE METHOD OF INVESTING AMOUNTS CONTRIBUTED 5 TO A PLAN; 6 (IV) REVIEWING AND APPROVING SPECIFIC OPTIONS OFFERED BY 7 VARIOUS APPROVED PRIVATE FINANCIAL INSTITUTIONS, INSURANCE 8 COMPANIES AND OTHER ORGANIZATIONS FOR THE MANAGEMENT ON BEHALF 9 OF THE COMMONWEALTH, OR A POLITICAL SUBDIVISION, OF AMOUNTS OF 10 DEFERRED COMPENSATION, PROPERTY AND RIGHTS PURCHASED WITH SUCH 11 AMOUNTS, AND ALL INCOME ATTRIBUTABLE TO SUCH AMOUNTS, PROPERTY 12 AND RIGHTS, INCLUDING PLANS FOR THE INVESTMENT OF CONTRIBUTIONS 13 AND THE SCHEDULE OF FEES TO BE CHARGED AGAINST SUCH 14 CONTRIBUTIONS TO COVER THE COSTS OF ADMINISTERING THE FUNDS; 15 (V) PROVIDING INFORMATION TO ELIGIBLE INDIVIDUALS REGARDING 16 PARTICIPATION IN AN ELIGIBLE DEFERRED COMPENSATION PLAN AND THE 17 OPTIONS OF ELIGIBLE INDIVIDUALS TO CHOOSE AMONG VARIOUS 18 QUALIFIED FUND MANAGERS; 19 (VI) ESTABLISHING PROCEDURES WHEREBY ELIGIBLE INDIVIDUALS 20 WHO ELECT TO PARTICIPATE IN A PLAN MAY ELECT A SPECIFIC OPTION 21 FOR THE MANAGEMENT OF FUNDS OFFERED BY A QUALIFIED PRIVATE 22 FINANCIAL INSTITUTION, INSURANCE COMPANIES OR OTHER 23 ORGANIZATIONS; AND 24 (VII) ESTABLISHING PROCEDURES WHEREBY EACH MANAGER OF 25 CONTRIBUTIONS WILL MAKE DEFERRED COMPENSATION AVAILABLE TO AN 26 ELIGIBLE INDIVIDUAL UPON THE SEPARATION OF SUCH INDIVIDUAL FROM 27 SERVICE WITH THE COMMONWEALTH OR A POLITICAL SUBDIVISION, OR 28 UPON THE OCCURRENCE OF UNFORESEEABLE EMERGENCIES. 29 (5) ALL DEFERRED COMPENSATION PLANS SHALL BE ADMINISTERED IN 30 COMPLIANCE WITH SECTION 457 OF THE INTERNAL REVENUE CODE (26 19830H1672B3710 - 16 -
1 U.S.C. § 457) AND ITS ACCOMPANYING REGULATIONS. ANY INCOME 2 DEFERRED UNDER SUCH AUTHORIZED AGREEMENT SHALL CONTINUE TO BE 3 INCLUDED AS REGULAR COMPENSATION FOR COMPUTING RETIREMENT AND 4 PENSION BENEFITS EARNED BY ANY STATE OFFICER OR EMPLOYE AND FOR 5 COMPUTING STATE INCOME TAXES, BUT ANY SUM DEFERRED SHALL NOT BE 6 INCLUDED IN THE COMPUTATION OF ANY FEDERAL INCOME TAXES TO BE 7 WITHHELD. 8 (6) ALL AMOUNTS CONTRIBUTED TO A DEFERRED COMPENSATION PLAN 9 SHALL CONSTITUTE TAXABLE INCOME FOR PURPOSES OF THE ACT OF MARCH 10 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AND 11 ANY LOCAL EARNED INCOME TAXES. 12 (7) THE EXPENSES ARISING FROM ALLOWING INDIVIDUALS TO ELECT 13 TO PARTICIPATE IN A DEFERRED COMPENSATION PLAN, TO CHOOSE A FUND 14 MANAGER, TO DEDUCT FROM COMPENSATION AMOUNTS CONTRIBUTED TO A 15 PLAN, AND TO TRANSFER TO THE FUND MANAGER AMOUNTS SO DEDUCTED, 16 SHALL BE BORNE BY THE COMMONWEALTH OR THE POLITICAL SUBDIVISION. 17 ALL OTHER EXPENSES ARISING FROM THE ADMINISTRATION OF A DEFERRED 18 COMPENSATION PLAN SHALL BE ASSESSED AGAINST THE ACCOUNTS CREATED 19 ON BEHALF OF PARTICIPATING INDIVIDUALS EITHER BY THE FUND 20 MANAGERS OR BY THE COMMONWEALTH OR A POLITICAL SUBDIVISION. 21 (8) INVESTMENT OF DEFERRED FUNDS BY ANY CORPORATION, 22 INSTITUTION, INSURANCE COMPANY OR CUSTODIAL BANK WHICH THE 23 SECRETARY HAS APPROVED, SHALL NOT BE UNREASONABLY DELAYED, AND 24 IN NO CASE SHALL THE INVESTMENT OF DEFERRED FUNDS BE DELAYED 25 MORE THAN THIRTY DAYS. ANY INTEREST EARNED ON SUCH FUNDS PENDING 26 INVESTMENT SHALL BE ALLOCATED TO EMPLOYES WHO ARE THEN 27 PARTICIPATING IN THE PLAN UNLESS SUCH INTEREST IS USED TO DEFRAY 28 ADMINISTRATIVE EXPENSES AND FEES WHICH WOULD OTHERWISE BE 29 REQUIRED TO BE BORNE BY EMPLOYES WHO ARE THEN PARTICIPATING IN 30 THE PLAN. 19830H1672B3710 - 17 -
1 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. J26L71JAM/19830H1672B3710 - 18 -