PRIOR PRINTER'S NOS. 1617, 3114               PRINTER'S NO. 3389

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1392 Session of 1991


        INTRODUCED BY LAUGHLIN, TIGUE, S. H. SMITH, KOSINSKI, STEIGHNER,
           J. TAYLOR, PRESTON, BELFANTI, STABACK, JAROLIN, VEON, THOMAS,
           TRELLO, CAPPABIANCA, JOSEPHS, PISTELLA, ITKIN, MELIO,
           BELARDI, STURLA, BILLOW, PETRONE, MICHLOVIC, GIGLIOTTI,
           RICHARDSON AND RITTER, MAY 14, 1991

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           APRIL 1, 1992

                                     AN ACT

     1  Requiring certain insurance information to be supplied by
     2     certain applicants for municipal building permits; and
     3     providing for certain waivers and for insurance cancellation.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Definitions.
     7     The following words and phrases when used in this act shall
     8  have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Municipality."  A county, city, borough, incorporated town
    11  or township, regardless of the form of government.
    12  Section 2.  Content of building permits.
    13     Every building permit issued by a municipality to a
    14  contractor shall clearly set forth the name and policy number of
    15  the contractor's workers' compensation insurance policy and the
    16  contractor's Employer Identification Number. This information


     1  shall be in addition to any information required by municipal
     2  ordinance.
     3  Section 3.  Sole proprietorship.
     4     Every building permit issued to a contractor who is a sole
     5  proprietor or principal shareholder of a corporation, which does
     6  not employ other individuals to perform the work pursuant to the
     7  building permit, shall clearly set forth the contractor's
     8  Employer Identification Number but shall not include the name
     9  and policy number of workers' compensation insurance as stated
    10  in section 2. If the contractor has not obtained an Employer
    11  Identification Number, the building permit shall clearly set
    12  forth the contractor's Social Security number. No municipality
    13  shall issue a building permit to a contractor as described in
    14  this section unless the contractor presents a notarized
    15  statement that he does not employ any employees.
    16  Section 4.  Property owners.
    17     Every building permit issued to a property owner performing
    18  work on his own property shall contain a provision which shall
    19  be signed by the property owner, stating that the property owner
    20  understands his related liability in performing his own work,
    21  and his liability in hiring an uninsured contractor and that he
    22  waives all right to claims against the municipality.
    23  Section 5.  Insurance certificate.
    24     (a)  Municipality as holder.--Every municipality issuing a
    25  building permit shall be named as a workers' compensation policy
    26  certificate holder of a contractor applying for the building
    27  permit. This certificate shall be filed with the municipality's
    28  copy of the building permit.
    29     (b)  Cancellation of insurance.--A municipality may issue a
    30  stopwork order to a contractor who is performing work pursuant
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     1  to a building permit, in the event his workers' compensation
     2  insurance is canceled.
     3  Section 6.  Liability of municipality.                            <--
     4     Nothing in this act shall be the basis of any liability on
     5  the part of a municipality.
     6  SECTION 6.  IMMUNITY.                                             <--
     7     (A)  WORKERS' COMPENSATION.--A MUNICIPALITY SHALL NOT BE
     8  LIABLE FOR THE PAYMENT OF WORKERS' COMPENSATION BENEFITS AS A
     9  RESULT OF FAILURE OF A CONTRACTOR TO MAINTAIN WORKERS'
    10  COMPENSATION COVERAGE AS REQUIRED BY LAW.
    11     (B)  STOPWORK ORDERS.--IF A MUNICIPALITY ISSUES A STOPWORK
    12  ORDER UNDER THIS ACT, THERE SHALL BE NO LIABILITY FOR DAMAGES.
    13  SECTION 7.  EXEMPTION.
    14     IF A PERSON IS UNABLE TO COMPLY WITH A PROVISION OF THIS ACT
    15  BECAUSE SUCH COMPLIANCE WOULD CONFLICT WITH THE TENETS AND
    16  PRACTICES OF HIS CHURCH OR RELIGIOUS DENOMINATION, THE PERSON
    17  SHALL BE EXEMPT FROM THAT PROVISION.
    18  Section 7 8.  Effective date.                                     <--
    19     This act shall take effect in 60 days.








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