SENATE AMENDED
PRIOR PRINTER'S NOS. 2112, 2126, 2314, PRINTER'S NO. 3749
2738, 3710
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
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 27, 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;
22 reestablishing and continuing the Crime Victim's Compensation
1 Board; and making an editorial change.
2 AMENDING THE ACT OF MARCH 30, 1811 (P.L.145, NO.99), ENTITLED <--
3 "AN ACT TO AMEND AND CONSOLIDATE THE SEVERAL ACTS RELATING TO
4 THE SETTLEMENT OF THE PUBLIC ACCOUNTS AND THE PAYMENT OF THE
5 PUBLIC MONIES, AND FOR OTHER PURPOSES," CREATING A DEFERRED
6 COMPENSATION BOARD; AND PROVIDING FOR DEFERRED COMPENSATION.
7 AMENDING THE ACT OF MARCH 30, 1811 (P.L.145, NO.99), ENTITLED <--
8 "AN ACT TO AMEND AND CONSOLIDATE THE SEVERAL ACTS RELATING TO
9 THE SETTLEMENT OF THE PUBLIC ACCOUNTS AND THE PAYMENT OF THE
10 PUBLIC MONIES, AND FOR OTHER PURPOSES," PROVIDING FOR
11 DEFERRED COMPENSATION.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 477 of the act of April 9, 1929 (P.L.177, <--
15 No.175), known as The Administrative Code of 1929, amended
16 December 10, 1976 (P.L.1305, No.287) and December 13, 1979
17 (P.L.519, No.114), is amended to read:
18 Section 477. Definitions.--So far as it relates to the crime
19 victim's compensation provisions, the following terms shall be
20 defined as:
21 "Board" means the Crime Victim's Compensation Board.
22 "Claimant" means the person filing a claim pursuant to this
23 act.
24 "Crime" means an act committed in Pennsylvania which, if
25 committed by a mentally competent, criminally responsible adult,
26 who had no legal exemption or defense, would constitute a crime
27 as defined in and proscribed by Title 18 of the "Pennsylvania
28 Consolidated Statutes," (relating to crimes and offenses) or any <--
29 other penal law of the Commonwealth ENUMERATED IN THE ACT OF <--
30 APRIL 14, 1972 (P.L.233, NO.64), KNOWN AS "THE CONTROLLED
31 SUBSTANCE, DRUG, DEVICE AND COSMETIC ACT": Provided, however,
32 That no act involving the operation of a motor vehicle which
33 results in injury shall constitute a crime for the purpose of
34 this act unless such injury was intentionally inflicted through
35 the use of a motor vehicle.
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1 "Family," when used in reference to a person, shall mean (i)
2 anyone related to such person within the third degree of
3 consanguinity or affinity, (ii) anyone maintaining a common-law
4 relationship with such person, or (iii) anyone residing in the
5 same household with such person.
6 "Intervenor" shall mean a person who goes to the aid of
7 another and suffers bodily injury or death as a direct result of
8 acting not recklessly to prevent the commission of a crime, or
9 to lawfully apprehend a person reasonably suspected of having
10 committed such crime, or to aid the victim of such crime.
11 "Local law enforcement agency" means a police department of a
12 city, borough, incorporated town or township.
13 "Loss of earnings" in addition to its ordinary meaning, shall
14 mean the loss of the cash equivalent of a social security
15 payment where social security is the sole PRIMARY source of the <--
16 victim's income and where the victim is deprived of the money as
17 a direct result of a crime.
18 "Out-of-pocket loss" means the unreimbursed and
19 unreimbursable expenses or indebtedness incurred for medical
20 care, nonmedical remedial care and treatment rendered in
21 accordance with a religious method of healing as approved by the
22 board, or other services, including psychological counseling,
23 reasonably necessary as a result of the injury upon which the
24 claim is based and for which the claimant either has paid or is
25 liable to include expenses for physical examinations and
26 materials used to obtain evidence. In no case shall property
27 damages or compensation for pain and suffering be included.
28 "Victim" shall mean a person, other than the alleged
29 offender, who suffers bodily injury [or], death or the loss of
30 the proceeds of a social security payment which is the sole <--
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1 PRIMARY income of the recipient as a direct result of a crime. <--
2 Section 2. Section 477.1(e) of the act, added July 9, 1976 <--
3 (P.L.574, No.139), is amended to read:
4 Section 477.1. Crime Victim's Compensation Board.--* * *
5 (e) [The members of the board shall devote their full time
6 and capacity to their duties. The members of the board shall
7 receive an annual starting salary of twenty-five thousand
8 dollars ($25,000). Thereafter they shall receive an annual
9 salary to be fixed by the Executive Board of the Commonwealth
10 within the amount made available by appropriation. The chairman
11 shall receive five hundred dollars ($500) additional
12 compensation per annum.] The chairman shall devote his full time
13 and capacity to his duties. The remaining members of the board
14 shall serve on a part-time basis. The chairman shall receive a
15 starting salary of twenty-five thousand five hundred dollars
16 ($25,500). Thereafter he or she shall receive an annual salary
17 to be fixed by the Executive Board of the Commonwealth within
18 the amount made available by appropriation. The remaining
19 members of the board shall receive a per diem salary of one
20 hundred dollars ($100) per day based on guidelines set forth by
21 the Executive Board plus reasonable expenses for travel, lodging
22 and meals.
23 Section 3. Section 477.2(a) 2. SECTION 477.2 of the act, <--
24 added July 9, 1976 (P.L.574, No.139), is amended and a <--
25 subsection is added BY ADDING A SUBSECTION to read: <--
26 Section 477.2. Powers and Duties of Board.--The board shall
27 have the following powers and duties:
28 (a) To establish and maintain a principal office in or near <--
29 Harrisburg [and such other offices within the Commonwealth as it
30 may deem necessary].
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1 * * *
2 (l) To administer the Crime Victim's Compensation Fund,
3 created under 42 Pa.C.S. § 1725.3 (relating to mandatory costs),
4 for the payment of claims filed under this act and for all
5 reasonable and necessary administrative expenses.
6 Section 4 3. Section 477.3 of the act, added July 9, 1976 <--
7 (P.L.574, No.139), is amended to read:
8 Section 477.3. Persons Eligible for Compensation.--(a)
9 Except as provided in subsection (b) of this section, the
10 following persons shall be eligible for compensation:
11 (1) A victim.
12 (2) An intervenor.
13 (3) A surviving spouse, parent or child of a deceased victim
14 or intervenor.
15 (4) Any other person dependent for his principal support
16 upon a deceased victim or intervenor.
17 (5) Any person who legally assumes the obligation or who <--
18 voluntarily pays the funeral or burial expenses incurred as a
19 direct result of the crime.
20 (5) ANY PERSON RELATED TO THE VICTIM WITHIN THE THIRD DEGREE <--
21 OF CONSANGUINITY OR AFFINITY WHO ASSUMES THE OBLIGATION OR WHO
22 PAYS THE FUNERAL OR BURIAL EXPENSE INCURRED AS A DIRECT RESULT
23 OF THE CRIME.
24 (b) A person who is criminally responsible for the crime
25 upon which a claim is based or an accomplice of such person
26 shall not be eligible to receive compensation with respect to
27 such claim. A member of the family of the person who [allegedly]
28 committed the crime shall not be eligible [under any
29 circumstances] if, at the rendering of a verdict in the criminal <--
30 proceeding, the offender is living in the same household as the
19830H1672B3749 - 5 -
1 victim and will benefit from the award. The Attorney General may
2 sue the offender or the victim or both to recover the award if
3 the offender at any time benefits from the award.
4 (c) A person who is not a resident of Pennsylvania at the
5 time of occurrence of the crime upon which the claim is based,
6 shall be eligible for compensation only if the law of the state
7 of which he is a resident at the time of occurrence of the crime
8 upon which the claim is based provides for compensation to
9 Pennsylvania residents who are victims of crime in such state.
10 (d) If the victim's state of residence provides payments to
11 its residents injured in Pennsylvania, primary responsibility
12 for payment to the victim shall rest with the victim's state of
13 residence.
14 Section 5 4. Section 477.5 of the act is repealed. <--
15 Section 6 5. Section 477.9 of the act, added July 9, 1976 <--
16 (P.L.574, No.139) and amended December 13, 1979 (P.L.519,
17 No.114), is amended to read:
18 Section 477.9. Awards.--(a) No award shall be made unless
19 the board or board member, as the case may be, finds by a
20 preponderance of the evidence that:
21 (1) A crime was committed.
22 (2) The person injured or killed was a victim or intervenor
23 as defined in section 477.
24 (3) Such crime was promptly reported to the proper
25 authorities; and in no case may an award be made where the
26 record shows that such report was made more than seventy-two
27 hours after the occurrence of such crime unless the board, for
28 good cause shown, finds the delay to have been justified. The
29 board, upon finding that any claimant, victim or intervenor has
30 not fully cooperated with all law enforcement agencies, may deny
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1 or withdraw any award, as the case may be.
2 (b) Any award made pursuant to [sections 477 to 477.15] the
3 provisions of this act shall be in an amount not exceeding out-
4 of-pocket loss, together with loss of past, present or future
5 earnings or support resulting from such injury. In no case shall
6 the total amount of an award exceed [twenty-five thousand
7 dollars ($25,000)] thirty-five thousand dollars ($35,000).
8 (c) Any award made for loss of earnings or support shall,
9 unless reduced pursuant to other provisions of this act, be in
10 an amount equal to the actual loss sustained: Provided, however,
11 That no such award shall exceed [two hundred dollars ($200)] the
12 average weekly wage FOR ALL PERSONS COVERED BY THE ACT OF <--
13 DECEMBER 5, 1936 (2ND SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS
14 THE "UNEMPLOYMENT COMPENSATION LAW," in Pennsylvania as
15 determined annually by the Department of Labor and Industry at <--
16 the time the crime was committed for each week of lost earnings
17 or support: And, provided further, That the aggregate award for
18 such loss shall not exceed [ten thousand dollars ($10,000)]
19 fifteen thousand dollars ($15,000) except that in the case of
20 death of a victim or intervenor, the aggregate award shall not
21 exceed [fifteen thousand dollars ($15,000)] twenty thousand
22 dollars ($20,000).
23 (d) If there are two or more persons entitled to an award as
24 a result of the death of a victim or intervenor, the award shall
25 be apportioned among the claimants.
26 (e) Except for [claims involving] any payments or proceeds
27 that are specifically denominated as compensation for
28 dismemberment or loss of an eye, any award made pursuant to this
29 act shall be reduced by the amount of any payments received or
30 to be received by the claimant as a result of the injury (i)
19830H1672B3749 - 7 -
1 from or on behalf of the person who committed the crime, (ii)
2 under any insurance programs including those mandated by law,
3 (iii) under any contract of insurance wherein the claimant is
4 the insured beneficiary, (iv) from public funds, or (v) as an
5 emergency award pursuant to section 477.8 of this act.
6 (f) In determining the amount of an award, the board or
7 board member, as the case may be, shall determine whether,
8 because of his conduct, the victim or intervenor contributed to
9 the infliction of his injury except where the crime was rape in
10 which case the conduct of the victim shall not be considered,
11 and the board or board member shall reduce the amount of the
12 award or deny the claim altogether in accordance with such
13 determination: Provided, however, That the board or board
14 member, as the case may be, may disregard for this purpose the
15 contribution of the intervenor to his own injury where the
16 record shows that such contribution was attributed to efforts by
17 an intervenor as set forth in section 477.
18 Section 7 6. Section 477.13 of the act, added July 9, 1976 <--
19 (P.L.574, No.139), is amended to read:
20 Section 477.13. Restitution.--To the extent that restitution
21 is ordered pursuant to any other existing law, either prior to
22 or subsequent to the making of an award by this board, such
23 restitution shall be paid to the [Commonwealth] Crime Victim's
24 Compensation Fund created under 42 Pa.C.S. § 1725.3 (relating to
25 mandatory costs) to the extent of the award by the board.
26 Section 8 7. Section 477.17 of the act, added December 13, <--
27 1979 (P.L.519, No.144), is amended to read:
28 Section 477.17. Responsibilities of Local Law Enforcement
29 Agencies.--(a) All local law enforcement agencies shall insure
30 that all of its officers and employes are familiar with crime
19830H1672B3749 - 8 -
1 victim's compensation as provided for in sections 477 through
2 477.17 of this act. Instruction concerning crime victim's
3 compensation shall be made a part of the training curriculum for
4 all trainee officers.
5 (b) Local law enforcement agencies shall advise the victims
6 of crimes reported to it of the availability of crime victim's
7 compensation as provided by this act. The term "victim" as used
8 in this subsection shall be a victim as defined by this act. The
9 notice required under this subsection shall be in writing and
10 shall include the following paragraph:
11 "If you have sustained physical injury as a direct result
12 of a crime of violence, or are legally dependent for support
13 upon a person who has sustained physical injury or death as a
14 direct result of a crime of violence, or, in the event of a
15 death caused by a crime of violence, you have legally assumed
16 or voluntarily paid the medical or burial expenses incurred
17 as a direct result thereof, you may qualify for
18 indemnification by the State of Pennsylvania for the out-of-
19 pocket wages, medical or burial expenses which you have
20 incurred as a result of the crime. Claims must be filed with
21 the Crime Victim's Compensation Board for the State of
22 Pennsylvania. For further information regarding this program,
23 please contact:
24 (Name, business address and telephone
25 number of the local law enforcement
26 agency)
27 or
28 Crime Victim's Compensation Board
29 [Department of Justice]
30 Office of General Counsel
19830H1672B3749 - 9 -
1 Harrisburg, Pennsylvania
2 Important: The statute provides that, absent certain
3 extenuating circumstances, a claimant has one year from the
4 date of the crime to file his claim with the Crime Victim's
5 Compensation Board."
6 (c) The written notification provided for in subsection (b)
7 shall be accompanied by [three copies] one copy of the
8 application form for crime victim's compensation. These forms
9 shall be supplied by the Crime Victim's Compensation Board to
10 all local law enforcement agencies. The record of the date and
11 address of all letters of notification shall be maintained by
12 every local law enforcement agency.
13 (d) Any officer of a local law enforcement agency whose
14 duties include the investigation of crimes may notify victims or
15 their families of the availability of compensation under this
16 act by giving them a card or sheet bearing the paragraph as
17 quoted in subsection (b) above. A record of such personal notice
18 shall be maintained by the local law enforcement agency.
19 (e) In municipalities which do not have a local law
20 enforcement agency, the board shall by rule establish procedures
21 whereby it, together with the State Police, shall give the
22 notice to victims of crimes as provided in this section.
23 Section 9 8. Section 477.18 of the act, added December 14, <--
24 1982 (P.L.1213, No.280), is amended to read:
25 Section 477.18. Distribution of Moneys Received as a Result
26 of the Commission of Crime.--(a) Every person, contracting with
27 any person or the representative or assignee of any person[,]
28 accused or convicted of a crime in this Commonwealth, with
29 respect to the reenactment of such crime, by way of a movie,
30 book, magazine article, tape recording, phonograph record, radio
19830H1672B3749 - 10 -
1 or television presentation, live entertainment of any kind, or
2 from the expression of [such] the accused or convicted person's
3 thoughts, feelings, opinions or emotions regarding such crime,
4 shall notify the board of the contractual arrangements and shall
5 pay over to the board any moneys which would otherwise, by terms
6 of such contract, be owing to the person so accused or convicted
7 or his representatives. The board shall deposit such moneys in
8 an escrow account for the benefit of and payable to any [victim
9 of crimes committed by such person, provided that such person is
10 eventually convicted of the crime] eligible person and provided
11 [further] that such [victim] eligible person, within five years
12 of the date of the [crime] establishment of such escrow account,
13 brings a civil action for damages on any legal theory in a court
14 of competent jurisdiction and recovers a money judgment against
15 such accused or convicted person or his representatives[.] and
16 provided further that in the case of an accused person, such
17 person is eventually convicted. However, the accused or
18 convicted person may voluntarily request that the board make
19 payments to eligible persons who have not recovered money
20 judgments. In the case of an accused making such a voluntary
21 request, no payment shall be made until such person is convicted
22 and, upon conviction, the trial judge presiding over the case
23 shall determine the proportions of available escrow moneys
24 payable to each eligible person and shall certify those amounts
25 to the board. In the case of a convicted person making such a
26 voluntary request, the board shall determine the proportion of
27 available escrow moneys payable to eligible persons.
28 (b) (1) As used in this section, the term "eligible person"
29 shall include any of the following persons:
30 (i) A victim of the particular crime in question.
19830H1672B3749 - 11 -
1 (ii) An intervenor in such crime.
2 (iii) A surviving spouse, parent or child of a deceased
3 victim of, or intervenor in, such crime.
4 (iv) Any other person dependent for his principal support
5 upon a deceased victim of, or intervenor in, such crime.
6 No person who is criminally responsible for the crime in
7 question or was an accomplice of the person who is criminally
8 responsible shall be an eligible person.
9 (2) As used in this section, the term "convicted" includes
10 conviction by entry of a plea of guilty or nolo contendere,
11 conviction after trial, and a finding of not guilty due to
12 insanity or of guilty but mentally ill.
13 [(b) The] (c) Upon receiving escrow moneys, the board shall
14 notify all eligible persons that the escrow money is available
15 to satisfy money judgments or that the accused or convicted has
16 voluntarily requested that payments be made in the absence of a
17 money judgment. If, after a good faith effort, the board is
18 unable to give personal notice to each such eligible person, the
19 board, at least once every six months for five years from the
20 date it receives such moneys, shall cause to have published a
21 legal notice in newspapers of general circulation in each county
22 advising such [victims] eligible persons that such escrow moneys
23 are available to satisfy money judgments pursuant to this
24 section or that the accused or convicted has voluntarily
25 requested that payments be made in the absence of a money
26 judgment.
27 [(c)] (d) Upon disposition of charges favorable to any
28 person accused of committing a crime, or upon a showing by such
29 person that five years have elapsed from the establishment of
30 such escrow account and further that no actions are pending
19830H1672B3749 - 12 -
1 against such person pursuant to this section, the board shall
2 immediately pay over any moneys in the escrow account to such
3 person.
4 [(d)] (e) Notwithstanding any inconsistent provision of law
5 and rules of civil procedure with respect to the timely bringing
6 of an action, the five-year period provided for in subsection
7 (a) shall not begin to run until an escrow account has been
8 established.
9 [(e) Notwithstanding the foregoing provisions of this
10 section,]
11 (f) No payment to eligible persons shall be made from the
12 escrow account without official certification by the trial judge
13 that the criminal charges have been adjudicated finally,
14 including the disposition of any appeal. However, the board
15 shall make payments from an escrow account to [any person
16 accused of crime] an accused person prior to final adjudication
17 of the criminal charges upon the order of a court of competent
18 jurisdiction after a showing by such person that such moneys
19 shall be used for the exclusive purpose of retaining legal
20 representation at any stage of the proceedings against such
21 person, including the appeals process. The amount authorized for
22 attorneys' fees, expert witnesses and other costs of litigation
23 shall be approved and certified to the board by the judge
24 presiding at the trial of the accused.
25 [(f)] (g) Any action taken by any person convicted of a
26 crime, whether by way of execution of a power of attorney,
27 creation of corporate entities or otherwise, to defeat the
28 purpose of this section shall be null and void as against the
29 public policy of this Commonwealth.
30 Section 10 9. This act shall constitute the legislation <--
19830H1672B3749 - 13 -
1 required to reestablish and continue an agency pursuant to the
2 requirements and provisions of the act of December 22, 1981
3 (P.L.508, No.142), known as the Sunset Act. The Crime Victim's
4 Compensation Board is hereby reestablished and continued until
5 December 31, 1986.
6 Section 11 10. The provisions of sections 1 and 6 5 of this <--
7 act shall apply to claims arising out of crimes committed on or
8 after the effective date of this act.
9 Section 12 11. This act shall take effect immediately. <--
10 SECTION 1. SECTION VIII OF THE ACT OF MARCH 30, 1811 <--
11 (P.L.145, NO.99), ENTITLED "AN ACT TO AMEND AND CONSOLIDATE THE
12 SEVERAL ACTS RELATING TO THE SETTLEMENT OF THE PUBLIC ACCOUNTS
13 AND THE PAYMENT OF THE PUBLIC MONIES, AND FOR OTHER PURPOSES,"
14 AMENDED JULY 18, 1974 (P.L.472, NO.168), IS AMENDED TO READ:
15 SECTION VIII. AND BE IT FURTHER ENACTED BY THE AUTHORITY
16 AFORESAID, THAT THE STATE TREASURER SHALL PAY ALL GRANTS,
17 SALARIES, ANNUITIES, GRATUITIES, AND PENSIONS ESTABLISHED BY
18 LAW, AND MAKE ALL OTHER PAYMENTS WHICH ARE OR SHALL BE SO FIXED
19 BY LAW, THAT THE SUM TO BE PAID CANNOT BE AFFECTED BY THE
20 SETTLEMENT OF ANY ACCOUNT, NOR INCREASED NOR DIMINISHED BY THE
21 DISCRETIONARY POWERS OF THE AUDITOR-GENERAL AND STATE TREASURER;
22 PROVIDED HOWEVER, THAT IN RELATION TO PENSIONS PAYABLE UNDER
23 DECREES OF COURTS, THE STATE TREASURER MAY, IF HE DEEMS IT
24 PROPER, REFER THE SAID DECREES OR CERTIFICATES BACK TO THE COURT
25 FOR REVISION, STATING HIS REASONS THEREFOR: AND ALSO PROVIDED,
26 THAT THE TREASURER OR OTHER OFFICER IN CHARGE OF PAYROLLS FOR
27 THE STATE OR ANY COUNTY, CITY, TOWN OR OTHER POLITICAL
28 SUBDIVISION MAY MAKE SYSTEMATIC INVESTMENTS IN MUTUAL FUNDS,
29 SAVINGS ACCOUNTS OR GOVERNMENT BONDS OR MAKE PREMIUM PAYMENTS ON
30 LIFE INSURANCE OR ANNUITY CONTRACTS TO ANY INSTITUTION OR
19830H1672B3749 - 14 -
1 COMPANY LICENSED AND AUTHORIZED IN ACCORDANCE WITH THE RULES AND
2 REGULATIONS PROMULGATED BY THE APPROPRIATE STATE AGENCIES TO
3 ACCEPT DEPOSITS OR SELL SUCH PRODUCTS IN THIS STATE FOR THE
4 PURPOSE OF FUNDING A DEFERRED COMPENSATION PROGRAM FOR EMPLOYES.
5 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
6 SECTION VIII.2. (1) THE COMMONWEALTH OF PENNSYLVANIA, AND
7 ANY POLITICAL SUBDIVISION OF THIS COMMONWEALTH, MAY ESTABLISH
8 ELIGIBLE DEFERRED COMPENSATION PLANS FOR THEIR ELECTED OR
9 APPOINTED OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS WHO PERFORM
10 SERVICES FOR THE COMMONWEALTH OR A POLITICAL SUBDIVISION,
11 PURSUANT TO SECTION 457 OF THE INTERNAL REVENUE CODE (26 U.S.C.
12 § 457).
13 (2) ANY ELIGIBLE DEFERRED COMPENSATION PLANS ESTABLISHED FOR
14 COMMONWEALTH OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS WHO
15 PERFORM SERVICES FOR THE COMMONWEALTH, SHALL BE ESTABLISHED AND
16 ADMINISTERED BY THE OFFICE OF ADMINISTRATION.
17 (3) ANY ELIGIBLE DEFERRED COMPENSATION PLANS ESTABLISHED FOR
18 THE OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS PERFORMING SERVICES
19 FOR A POLITICAL SUBDIVISION SHALL BE ESTABLISHED AND
20 ADMINISTERED BY THE GOVERNING BODY OF THE POLITICAL SUBDIVISION.
21 (4) IN ORDER TO ESTABLISH AND ADMINISTER ELIGIBLE DEFERRED
22 COMPENSATION PLANS THE POWERS AND DUTIES OF THE OFFICE OF
23 ADMINISTRATION OR THE GOVERNING BODY OF A POLITICAL SUBDIVISION
24 SHALL INCLUDE, BUT NOT BE LIMITED TO:
25 (I) ESTABLISHING PROCEDURES WHEREBY ELIGIBLE INDIVIDUALS MAY
26 ELECT TO PARTICIPATE IN, OR WITHDRAW FROM PARTICIPATION IN, A
27 PLAN AND WHEREBY SUCH INDIVIDUALS MAY DESIGNATE THE AMOUNT OF
28 COMPENSATION TO BE DEFERRED;
29 (II) DEDUCTING FROM THE COMPENSATION OF ELIGIBLE INDIVIDUALS
30 AMOUNTS TO BE CONTRIBUTED TO A PLAN;
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1 (III) SELECTING PRIVATE FINANCIAL INSTITUTIONS, INSURANCE
2 COMPANIES AND OTHER ORGANIZATIONS WHICH WILL BE QUALIFIED AS
3 MANAGERS ON BEHALF OF THE COMMONWEALTH, OR A POLITICAL
4 SUBDIVISION, OF FUNDS CONTRIBUTED TO A PLAN ON BEHALF OF ANY
5 ELIGIBLE INDIVIDUAL, AND WHICH WILL OFFER ELIGIBLE INDIVIDUALS
6 OPTIONS CONCERNING THE METHOD OF INVESTING AMOUNTS CONTRIBUTED
7 TO A PLAN;
8 (IV) REVIEWING AND APPROVING SPECIFIC OPTIONS OFFERED BY
9 VARIOUS APPROVED PRIVATE FINANCIAL INSTITUTIONS, INSURANCE
10 COMPANIES AND OTHER ORGANIZATIONS FOR THE MANAGEMENT ON BEHALF
11 OF THE COMMONWEALTH, OR A POLITICAL SUBDIVISION, OF AMOUNTS OF
12 DEFERRED COMPENSATION, PROPERTY AND RIGHTS PURCHASED WITH SUCH
13 AMOUNTS, AND ALL INCOME ATTRIBUTABLE TO SUCH AMOUNTS, PROPERTY
14 AND RIGHTS, INCLUDING PLANS FOR THE INVESTMENT OF CONTRIBUTIONS
15 AND THE SCHEDULE OF FEES TO BE CHARGED AGAINST SUCH
16 CONTRIBUTIONS TO COVER THE COSTS OF ADMINISTERING THE FUNDS;
17 (V) PROVIDING INFORMATION TO ELIGIBLE INDIVIDUALS REGARDING
18 PARTICIPATION IN AN ELIGIBLE DEFERRED COMPENSATION PLAN AND THE
19 OPTIONS OF ELIGIBLE INDIVIDUALS TO CHOOSE AMONG VARIOUS
20 QUALIFIED FUND MANAGERS;
21 (VI) ESTABLISHING PROCEDURES WHEREBY ELIGIBLE INDIVIDUALS
22 WHO ELECT TO PARTICIPATE IN A PLAN MAY ELECT A SPECIFIC OPTION
23 FOR THE MANAGEMENT OF FUNDS OFFERED BY A QUALIFIED PRIVATE
24 FINANCIAL INSTITUTION, INSURANCE COMPANIES OR OTHER
25 ORGANIZATIONS; AND
26 (VII) ESTABLISHING PROCEDURES WHEREBY EACH MANAGER OF
27 CONTRIBUTIONS WILL MAKE DEFERRED COMPENSATION AVAILABLE TO AN
28 ELIGIBLE INDIVIDUAL UPON THE SEPARATION OF SUCH INDIVIDUAL FROM
29 SERVICE WITH THE COMMONWEALTH OR A POLITICAL SUBDIVISION, OR
30 UPON THE OCCURRENCE OF UNFORESEEABLE EMERGENCIES.
19830H1672B3749 - 16 -
1 (5) ALL DEFERRED COMPENSATION PLANS SHALL BE ADMINISTERED IN
2 COMPLIANCE WITH SECTION 457 OF THE INTERNAL REVENUE CODE (26
3 U.S.C. § 457) AND ITS ACCOMPANYING REGULATIONS. ANY INCOME
4 DEFERRED UNDER SUCH AUTHORIZED AGREEMENT SHALL CONTINUE TO BE
5 INCLUDED AS REGULAR COMPENSATION FOR COMPUTING RETIREMENT AND
6 PENSION BENEFITS EARNED BY ANY STATE OFFICER OR EMPLOYE AND FOR
7 COMPUTING STATE INCOME TAXES, BUT ANY SUM DEFERRED SHALL NOT BE
8 INCLUDED IN THE COMPUTATION OF ANY FEDERAL INCOME TAXES TO BE
9 WITHHELD.
10 (6) ALL AMOUNTS CONTRIBUTED TO A DEFERRED COMPENSATION PLAN
11 SHALL CONSTITUTE TAXABLE INCOME FOR PURPOSES OF THE ACT OF MARCH
12 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AND
13 ANY LOCAL EARNED INCOME TAXES.
14 (7) THE EXPENSES ARISING FROM ALLOWING INDIVIDUALS TO ELECT
15 TO PARTICIPATE IN A DEFERRED COMPENSATION PLAN, TO CHOOSE A FUND
16 MANAGER, TO DEDUCT FROM COMPENSATION AMOUNTS CONTRIBUTED TO A
17 PLAN, AND TO TRANSFER TO THE FUND MANAGER AMOUNTS SO DEDUCTED,
18 SHALL BE BORNE BY THE COMMONWEALTH OR THE POLITICAL SUBDIVISION.
19 ALL OTHER EXPENSES ARISING FROM THE ADMINISTRATION OF A DEFERRED
20 COMPENSATION PLAN SHALL BE ASSESSED AGAINST THE ACCOUNTS CREATED
21 ON BEHALF OF PARTICIPATING INDIVIDUALS EITHER BY THE FUND
22 MANAGERS OR BY THE COMMONWEALTH OR A POLITICAL SUBDIVISION.
23 (8) INVESTMENT OF DEFERRED FUNDS BY ANY CORPORATION,
24 INSTITUTION, INSURANCE COMPANY OR CUSTODIAL BANK WHICH THE
25 SECRETARY HAS APPROVED, SHALL NOT BE UNREASONABLY DELAYED, AND
26 IN NO CASE SHALL THE INVESTMENT OF DEFERRED FUNDS BE DELAYED
27 MORE THAN THIRTY DAYS. ANY INTEREST EARNED ON SUCH FUNDS PENDING
28 INVESTMENT SHALL BE ALLOCATED TO EMPLOYES WHO ARE THEN
29 PARTICIPATING IN THE PLAN UNLESS SUCH INTEREST IS USED TO DEFRAY
30 ADMINISTRATIVE EXPENSES AND FEES WHICH WOULD OTHERWISE BE
19830H1672B3749 - 17 -
1 REQUIRED TO BE BORNE BY EMPLOYES WHO ARE THEN PARTICIPATING IN
2 THE PLAN.
3 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
4 SECTION 1. SECTION VIII OF THE ACT OF MARCH 30, 1811
5 (P.L.145, NO.99), ENTITLED "AN ACT TO AMEND AND CONSOLIDATE THE
6 SEVERAL ACTS RELATING TO THE SETTLEMENT OF THE PUBLIC ACCOUNTS
7 AND THE PAYMENT OF THE PUBLIC MONIES, AND FOR OTHER PURPOSES,"
8 AMENDED JULY 18, 1974 (P.L.472, NO.168), IS AMENDED TO READ:
9 SECTION VIII. AND BE IT FURTHER ENACTED BY THE AUTHORITY
10 AFORESAID, THAT THE STATE TREASURER SHALL PAY ALL GRANTS,
11 SALARIES, ANNUITIES, GRATUITIES, AND PENSIONS ESTABLISHED BY
12 LAW, AND MAKE ALL OTHER PAYMENTS WHICH ARE OR SHALL BE SO FIXED
13 BY LAW, THAT THE SUM TO BE PAID CANNOT BE AFFECTED BY THE
14 SETTLEMENT OF ANY ACCOUNT, NOR INCREASED NOR DIMINISHED BY THE
15 DISCRETIONARY POWERS OF THE AUDITOR-GENERAL AND STATE TREASURER;
16 PROVIDED HOWEVER, THAT IN RELATION TO PENSIONS PAYABLE UNDER
17 DECREES OF COURTS, THE STATE TREASURER MAY, IF HE DEEMS IT
18 PROPER, REFER THE SAID DECREES OR CERTIFICATES BACK TO THE COURT
19 FOR REVISION, STATING HIS REASONS THEREFOR: AND ALSO PROVIDED,
20 THAT THE TREASURER OR OTHER OFFICER IN CHARGE OF PAYROLLS FOR
21 THE STATE OR ANY COUNTY, CITY, TOWN OR OTHER POLITICAL
22 SUBDIVISION MAY MAKE SYSTEMATIC INVESTMENTS IN MUTUAL FUNDS,
23 SAVINGS ACCOUNTS OR GOVERNMENT BONDS OR MAKE PREMIUM PAYMENTS ON
24 LIFE INSURANCE OR ANNUITY CONTRACTS TO ANY INSTITUTION OR
25 COMPANY LICENSED AND AUTHORIZED IN ACCORDANCE WITH THE RULES AND
26 REGULATIONS PROMULGATED BY THE APPROPRIATE STATE AGENCIES TO
27 ACCEPT DEPOSITS OR SELL SUCH PRODUCTS IN THIS STATE FOR THE
28 PURPOSE OF FUNDING A DEFERRED COMPENSATION PROGRAM FOR EMPLOYES.
29 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
30 SECTION VIII.2. (1) THE COMMONWEALTH OF PENNSYLVANIA, AND
19830H1672B3749 - 18 -
1 ANY POLITICAL SUBDIVISION OF THIS COMMONWEALTH, MAY ESTABLISH
2 ELIGIBLE DEFERRED COMPENSATION PLANS FOR THEIR ELECTED OR
3 APPOINTED OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS WHO PERFORM
4 SERVICES FOR THE COMMONWEALTH OR A POLITICAL SUBDIVISION,
5 PURSUANT TO SECTION 457 OF THE INTERNAL REVENUE CODE (26 U.S.C.
6 § 457).
7 (2) ANY ELIGIBLE DEFERRED COMPENSATION PLANS ESTABLISHED FOR
8 COMMONWEALTH OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS WHO
9 PERFORM SERVICES FOR THE COMMONWEALTH, SHALL BE ESTABLISHED AND
10 ADMINISTERED BY THE OFFICE OF ADMINISTRATION.
11 (3) ANY ELIGIBLE DEFERRED COMPENSATION PLANS ESTABLISHED FOR
12 THE OFFICIALS, EMPLOYES OR OTHER INDIVIDUALS PERFORMING SERVICES
13 FOR A POLITICAL SUBDIVISION SHALL BE ESTABLISHED AND
14 ADMINISTERED BY THE GOVERNING BODY OF THE POLITICAL SUBDIVISION.
15 (4) IN ORDER TO ESTABLISH AND ADMINISTER ELIGIBLE DEFERRED
16 COMPENSATION PLANS THE POWERS AND DUTIES OF THE OFFICE OF
17 ADMINISTRATION OR THE GOVERNING BODY OF A POLITICAL SUBDIVISION
18 SHALL INCLUDE, BUT NOT BE LIMITED TO:
19 (I) ESTABLISHING PROCEDURES WHEREBY ELIGIBLE INDIVIDUALS MAY
20 ELECT TO PARTICIPATE IN, OR WITHDRAW FROM PARTICIPATION IN, A
21 PLAN AND WHEREBY SUCH INDIVIDUALS MAY DESIGNATE THE AMOUNT OF
22 COMPENSATION TO BE DEFERRED;
23 (II) DEDUCTING FROM THE COMPENSATION OF ELIGIBLE INDIVIDUALS
24 AMOUNTS TO BE CONTRIBUTED TO A PLAN;
25 (III) SELECTING PRIVATE FINANCIAL INSTITUTIONS, INSURANCE
26 COMPANIES AND OTHER ORGANIZATIONS WHICH WILL BE QUALIFIED AS
27 MANAGERS ON BEHALF OF THE COMMONWEALTH, OR A POLITICAL
28 SUBDIVISION, OF FUNDS CONTRIBUTED TO A PLAN ON BEHALF OF ANY
29 ELIGIBLE INDIVIDUAL, AND WHICH WILL OFFER ELIGIBLE INDIVIDUALS
30 OPTIONS CONCERNING THE METHOD OF INVESTING AMOUNTS CONTRIBUTED
19830H1672B3749 - 19 -
1 TO A PLAN;
2 (IV) REVIEWING AND APPROVING SPECIFIC OPTIONS OFFERED BY
3 VARIOUS APPROVED PRIVATE FINANCIAL INSTITUTIONS, INSURANCE
4 COMPANIES AND OTHER ORGANIZATIONS FOR THE MANAGEMENT ON BEHALF
5 OF THE COMMONWEALTH, OR A POLITICAL SUBDIVISION, OF AMOUNTS OF
6 DEFERRED COMPENSATION, PROPERTY AND RIGHTS PURCHASED WITH SUCH
7 AMOUNTS, AND ALL INCOME ATTRIBUTABLE TO SUCH AMOUNTS, PROPERTY
8 AND RIGHTS, INCLUDING PLANS FOR THE INVESTMENT OF CONTRIBUTIONS
9 AND THE SCHEDULE OF FEES TO BE CHARGED AGAINST SUCH
10 CONTRIBUTIONS TO COVER THE COSTS OF ADMINISTERING THE FUNDS;
11 (V) PROVIDING INFORMATION TO ELIGIBLE INDIVIDUALS REGARDING
12 PARTICIPATION IN AN ELIGIBLE DEFERRED COMPENSATION PLAN AND THE
13 OPTIONS OF ELIGIBLE INDIVIDUALS TO CHOOSE AMONG VARIOUS
14 QUALIFIED FUND MANAGERS;
15 (VI) ESTABLISHING PROCEDURES WHEREBY ELIGIBLE INDIVIDUALS
16 WHO ELECT TO PARTICIPATE IN A PLAN MAY ELECT A SPECIFIC OPTION
17 FOR THE MANAGEMENT OF FUNDS OFFERED BY A QUALIFIED PRIVATE
18 FINANCIAL INSTITUTION, INSURANCE COMPANIES OR OTHER
19 ORGANIZATIONS; AND
20 (VII) ESTABLISHING PROCEDURES WHEREBY EACH MANAGER OF
21 CONTRIBUTIONS WILL MAKE DEFERRED COMPENSATION AVAILABLE TO AN
22 ELIGIBLE INDIVIDUAL UPON THE SEPARATION OF SUCH INDIVIDUAL FROM
23 SERVICE WITH THE COMMONWEALTH OR A POLITICAL SUBDIVISION, OR
24 UPON THE OCCURRENCE OF UNFORESEEABLE EMERGENCIES.
25 (5) ALL DEFERRED COMPENSATION PLANS SHALL BE ADMINISTERED IN
26 COMPLIANCE WITH SECTION 457 OF THE INTERNAL REVENUE CODE (26
27 U.S.C. § 457) AND ITS ACCOMPANYING REGULATIONS. ANY INCOME
28 DEFERRED UNDER SUCH AUTHORIZED AGREEMENT SHALL CONTINUE TO BE
29 INCLUDED AS REGULAR COMPENSATION FOR COMPUTING RETIREMENT AND
30 PENSION BENEFITS EARNED BY ANY STATE OFFICER OR EMPLOYE AND FOR
19830H1672B3749 - 20 -
1 COMPUTING STATE INCOME TAXES, BUT ANY SUM DEFERRED SHALL NOT BE
2 INCLUDED IN THE COMPUTATION OF ANY FEDERAL INCOME TAXES TO BE
3 WITHHELD.
4 (6) ALL AMOUNTS CONTRIBUTED TO A DEFERRED COMPENSATION PLAN
5 SHALL CONSTITUTE TAXABLE INCOME FOR PURPOSES OF THE ACT OF MARCH
6 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AND
7 ANY LOCAL EARNED INCOME TAXES.
8 (7) THE EXPENSES ARISING FROM ALLOWING INDIVIDUALS TO ELECT
9 TO PARTICIPATE IN A DEFERRED COMPENSATION PLAN, TO CHOOSE A FUND
10 MANAGER, TO DEDUCT FROM COMPENSATION AMOUNTS CONTRIBUTED TO A
11 PLAN, AND TO TRANSFER TO THE FUND MANAGER AMOUNTS SO DEDUCTED,
12 SHALL BE BORNE BY THE COMMONWEALTH OR THE POLITICAL SUBDIVISION.
13 ALL OTHER EXPENSES ARISING FROM THE ADMINISTRATION OF A DEFERRED
14 COMPENSATION PLAN SHALL BE ASSESSED AGAINST THE ACCOUNTS CREATED
15 ON BEHALF OF PARTICIPATING INDIVIDUALS EITHER BY THE FUND
16 MANAGERS OR BY THE COMMONWEALTH OR A POLITICAL SUBDIVISION.
17 (8) INVESTMENT OF DEFERRED FUNDS BY ANY CORPORATION,
18 INSTITUTION, INSURANCE COMPANY OR CUSTODIAL BANK WHICH THE
19 SECRETARY OR GOVERNING BODY OF THE POLITICAL SUBDIVISION HAS
20 APPROVED, SHALL NOT BE UNREASONABLY DELAYED, AND IN NO CASE
21 SHALL THE INVESTMENT OF DEFERRED FUNDS BE DELAYED MORE THAN
22 THIRTY DAYS. ANY INTEREST EARNED ON SUCH FUNDS PENDING
23 INVESTMENT SHALL BE ALLOCATED TO THE COMMONWEALTH OR POLITICAL
24 SUBDIVISION AND CREDITED TO THE ACCOUNTS OF EMPLOYES WHO ARE
25 THEN PARTICIPATING IN THE PLAN UNLESS SUCH INTEREST IS USED TO
26 DEFRAY ADMINISTRATIVE EXPENSES AND FEES WHICH WOULD OTHERWISE BE
27 REQUIRED TO BE BORNE BY EMPLOYES WHO ARE THEN PARTICIPATING IN
28 THE PLAN.
29 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
J26L71JAM/19830H1672B3749 - 21 -