SENATE AMENDED
        PRIOR PRINTER'S NOS. 807, 3676                PRINTER'S NO. 3721

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 713 Session of 1975


        INTRODUCED BY MESSRS. PITTS, NOVAK, PETRARCA, A. K. HUTCHINSON,
           VROON, E. H. SMITH, MORRIS, TURNER, RHODES, McCLATCHY,
           MRS. FAWCETT AND MR. HASAY, MARCH 12, 1975

        AS AMENDED ON SECOND CONSIDERATION, IN SENATE,
           SEPTEMBER 21, 1976

                                     AN ACT

     1  Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as
     2     amended, "An act defining the liability of an employer to pay
     3     damages for injuries received by an employe in the course of
     4     employment; establishing an elective schedule of
     5     compensation; providing procedure for the determination of
     6     liability and compensation thereunder; and prescribing
     7     penalties," MAKING CERTAIN EDITORIAL CHANGES, PROVIDING FOR    <--
     8     THE ASSESSMENT OF INSURANCE CARRIERS, SELF-INSURERS, AND THE
     9     STATE WORKMEN'S INSURANCE FUND, REPEALING AN APPROPRIATION     <--
    10     AUTHORIZING THE TEMPORARY TRANSFER OF FUNDS FROM THE GENERAL   <--
    11     FUND TO THE WORKMEN'S COMPENSATION SUPPLEMENTAL PAYMENT FUND,
    12     AND providing an additional coverage.

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     SECTION 1.  THE NEXT TO THE LAST PARAGRAPH OF CLAUSE (C) AND   <--
    16  CLAUSE (H) OF SECTION 306, ACT OF JUNE 2, 1915 (P.L.736,
    17  NO.338), KNOWN AS "THE PENNSYLVANIA WORKMEN'S COMPENSATION ACT,"
    18  REENACTED AND AMENDED JUNE 21, 1939 (P.L.520, NO.281), CLAUSE
    19  (C) AMENDED AND CLAUSE (H) ADDED DECEMBER 5, 1974 (P.L.782,
    20  NO.263), ARE AMENDED, AND A CLAUSE IS CLAUSES ARE ADDED TO READ:  <--
    21     SECTION 306.  THE FOLLOWING SCHEDULE OF COMPENSATION IS


     1  HEREBY ESTABLISHED:
     2     * * *
     3     (C)  * * *
     4     COMPENSATION UNDER PARAGRAPHS (1) THROUGH (24) OF THIS CLAUSE
     5  SHALL NOT BE MORE THAN THE MAXIMUM COMPENSATION PAYABLE NOR LESS
     6  THAN FIFTY PER CENTUM OF THE MAXIMUM COMPENSATION PAYABLE PER
     7  WEEK [FOR TOTAL DISABILITY AS PROVIDED IN SUBSECTION (A) OF THIS
     8  SECTION, BUT IN NO EVENT MORE THAN THE STATEWIDE AVERAGE WEEKLY
     9  WAGE].
    10     * * *
    11     (H)  ANY PERSON RECEIVING COMPENSATION UNDER SECTIONS 306(A),
    12  306(B), 306(C)(23), OR SECTION 307, AS A RESULT OF AN ACCIDENT
    13  WHICH OCCURRED PRIOR TO THE EFFECTIVE DATE OF THE AMENDATORY ACT
    14  OF JANUARY 17, 1968 (P.L.6, NO.4) SHALL HAVE [THE] HIS
    15  COMPENSATION [RATE] ADJUSTED TO [THE LEVEL THEY] THAT WHICH HE
    16  WOULD HAVE RECEIVED HAD THE INJURY OCCURRED ON THE EFFECTIVE
    17  DATE OF THE AMENDATORY ACT OF JANUARY 17, 1968 (P.L.6, NO.4) AND
    18  HAD THE INJURED EMPLOYE BEEN EARNING WAGES EQUAL TO NINETY
    19  DOLLARS ($90) PER WEEK. IN CASES WHERE THE INJURED EMPLOYE HAD
    20  BEEN EARNING WAGES GREATER THAN NINETY DOLLARS ($90) PER WEEK,
    21  THOSE WAGES SHALL CONTINUE TO BE USED IN THE CALCULATION OF
    22  COMPENSATION. THE ADDITIONAL COMPENSATION SHALL BE PAID BY THE
    23  SELF-INSURED EMPLOYER OR INSURANCE CARRIER MAKING PAYMENT AND
    24  SHALL BE REIMBURSED IN ADVANCE BY THE COMMONWEALTH ON A
    25  QUARTERLY BASIS AS PROVIDED IN RULES AND REGULATIONS OF THE
    26  DEPARTMENT. THE PAYMENT OF ADDITIONAL COMPENSATION SHALL BE MADE
    27  BY THE CARRIER OR SELF-INSURED EMPLOYER ONLY DURING THOSE FISCAL
    28  YEARS FOR WHICH [APPROPRIATIONS ARE MADE TO COVER REIMBURSEMENT]
    29  SUFFICIENT MONEYS ARE AVAILABLE IN THE WORKMEN'S COMPENSATION
    30  SUPPLEMENTAL PAYMENT FUND TO COVER THE COST OF SUCH
    19750H0713B3721                  - 2 -

     1  REIMBURSEMENT.
     2     (I)  THE WORKMEN'S COMPENSATION SUPPLEMENTAL PAYMENT FUND IS
     3  HEREBY ESTABLISHED IN THE STATE TREASURY, SEPARATE AND APART
     4  FROM ALL OTHER PUBLIC MONEYS OR FUNDS OF THIS COMMONWEALTH. THE
     5  PURPOSE OF THIS FUND SHALL BE TO PROVIDE MONEYS FOR PAYMENTS
     6  PURSUANT TO SUBSECTION (H). THE DEPARTMENT SHALL BE CHARGED WITH
     7  THE MAINTENANCE AND CONSERVATION OF THIS FUND. THE FUND SHALL BE
     8  MAINTAINED BY ANNUAL ASSESSMENTS ON INSURERS AND SELF-INSURERS
     9  UNDER THIS ACT, INCLUDING THE STATE WORKMEN'S INSURANCE FUND.
    10  THE DEPARTMENT SHALL MAKE ASSESSMENTS AND COLLECT MONEYS
    11  PURSUANT TO THIS SECTION. THE ASSESSMENT SHALL BE TWO AND FIVE-
    12  TENTHS PER CENTUM OF THE TOTAL COMPENSATION PAID BY EACH
    13  INSURER, SELF-INSURER, AND THE STATE WORKMEN'S INSURANCE FUND IN
    14  THE CALENDAR YEAR PRECEDING THE YEAR IN WHICH THE ASSESSMENT IS
    15  MADE: PROVIDED, THAT THE FIRST ASSESSMENT MADE UNDER THIS ACT
    16  FOR THE FISCAL YEAR COMMENCING JULY 1, 1975 1976 AND ENDING       <--
    17  SEPTEMBER 30, 1976 JUNE 30, 1977 SHALL BE AT THE RATE OF TWO AND  <--
    18  EIGHT-TENTHS PER CENTUM OF TOTAL COMPENSATION PAID DURING THE
    19  CALENDAR YEAR 1974 1975. THE DEPARTMENT SHALL GIVE NOTICE TO      <--
    20  EVERY INSURER AND SELF-INSURER UNDER THIS ACT, INCLUDING THE
    21  STATE WORKMEN'S INSURANCE FUND, OF THE AMOUNT ASSESSED AGAINST
    22  SUCH INSURER, SELF-INSURER, OR THE STATE WORKMEN'S INSURANCE
    23  FUND ON OR BEFORE JUNE 30 OF THE YEAR FOLLOWING THE YEAR UPON
    24  WHICH THE ASSESSMENT IS BASED. PAYMENT OF ASSESSMENTS SHALL BE
    25  MADE TO THE DEPARTMENT WITHIN THIRTY DAYS OF RECEIPT OF NOTICE
    26  OF THE AMOUNT ASSESSED: PROVIDED, THAT NOTICE OF THE FIRST
    27  ANNUAL ASSESSMENT UNDER THIS ACT SHALL BE GIVEN TO EVERY INSURER
    28  AND SELF-INSURER UNDER THIS ACT, INCLUDING THE STATE WORKMEN'S
    29  INSURANCE FUND, WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS
    30  AMENDING ACT.
    19750H0713B3721                  - 3 -

     1     THE FUND SHALL BE SUBJECT TO AUDIT BY THE AUDITOR GENERAL AND
     2  A COPY OF THE REPORT OF THE AUDIT FURNISHED TO ASSESSED INSURERS
     3  AND SELF-INSURERS UPON REQUEST.
     4     THE SECRETARY OF LABOR AND INDUSTRY SHALL BE THE
     5  ADMINISTRATOR OF THE FUND AND SHALL HAVE THE POWER TO DISPENSE
     6  AND DISBURSE MONEYS FROM THE FUND FOR THE PURPOSE OF PAYMENTS
     7  MADE PURSUANT TO THIS SECTION. ALL MONEYS IN THE FUND AS ARE
     8  REQUIRED TO CARRY OUT THE PURPOSES OF THIS SECTION ARE HEREBY
     9  SPECIFICALLY APPROPRIATED TO THE DEPARTMENT OF LABOR AND
    10  INDUSTRY. THE STATE TREASURER SHALL BE CUSTODIAN OF THE FUND.
    11     (J)  UNTIL SUCH TIME AS A SUFFICIENT CASH BALANCE SHALL EXIST  <--
    12  IN THE WORKMEN'S COMPENSATION SUPPLEMENTAL PAYMENT FUND TO MEET
    13  PROMPTLY THE EXPENSES OF THE COMMONWEALTH PAYABLE FROM SUCH
    14  FUND, THE STATE TREASURER IS HEREBY AUTHORIZED AND DIRECTED,
    15  FROM TIME TO TIME, TO TRANSFER TO THE WORKMEN'S COMPENSATION
    16  SUPPLEMENTAL PAYMENT FUND IF THE SAME BE DEFICIENT, FROM THE
    17  GENERAL FUND, SUCH SUMS AS THE GOVERNOR SHALL DIRECT. ANY SUMS
    18  SO TRANSFERRED SHALL BE AVAILABLE FOR THE PURPOSES FOR WHICH THE
    19  FUND TO WHICH THEY ARE TRANSFERRED IS APPROPRIATED BY LAW. SUCH
    20  TRANSFERS SHALL BE MADE HEREUNDER UPON WARRANT OF THE STATE
    21  TREASURER UPON REQUISITION OF THE GOVERNOR.
    22     IN ORDER TO REIMBURSE THE GENERAL FUND FOR SUCH TRANSFERS, AN
    23  AMOUNT EQUAL TO THAT TRANSFERRED FROM THE GENERAL FUND DURING
    24  ANY FISCAL PERIOD SHALL BE RETRANSFERRED TO THE GENERAL FUND
    25  FROM THE WORKMEN'S COMPENSATION SUPPLEMENTAL PAYMENT FUND IN
    26  SUCH AMOUNTS AND AT SUCH TIMES AS THE GOVERNOR SHALL DIRECT, BUT
    27  IN NO EVENT LATER THAN THIRTY DAYS AFTER THE END OF SUCH FISCAL
    28  PERIOD. SUCH TRANSFERS SHALL BE MADE HEREUNDER UPON WARRANT OF
    29  THE STATE TREASURER UPON REQUISITION OF THE GOVERNOR.
    30     THE MONEYS IN THE GENERAL FUND AND IN THE WORKMEN'S
    19750H0713B3721                  - 4 -

     1  COMPENSATION SUPPLEMENTAL PAYMENT FUND ARE HEREBY SPECIFICALLY
     2  APPROPRIATED FOR TRANSFER FROM TIME TO TIME AS PROVIDED FOR IN
     3  THIS ACT.
     4     Section 1. 2.  Section 601, act of June 2, 1915 (P.L.736,      <--
     5  No.338), known as "The Pennsylvania Workmen's Compensation Act,"
     6  OF THE ACT, added December 5, 1974 (P.L.782, No.263), is amended  <--
     7  to read:
     8     Section 601.  In addition to those persons included within
     9  the definition of the word "employe" as defined in section 104
    10  of this act, there shall be included all members of volunteer
    11  ambulance corps, volunteer rescue and life saving squads,
    12  volunteer fire companies or volunteer fire departments of the
    13  various cities, boroughs, incorporated towns, and townships, who
    14  shall be and are hereby declared to be "employes" of such
    15  cities, boroughs, incorporated towns, townships, for all the
    16  purposes of this act, and shall be entitled to receive
    17  compensation in case of injuries received while actually engaged
    18  as ambulance corpsmen, rescue and life saving service squad
    19  members or firemen or while going to or returning from any fire
    20  which the fire companies or ambulance corps or rescue and life
    21  saving squad or fire department of which they are members shall
    22  have attended, or while participating in instruction fire,
    23  rescue and life saving or ambulance drills in which the fire
    24  company, rescue and life saving squad, or ambulance corps of
    25  which they are members shall have participated, or while
    26  repairing or doing other work about or on the fire, rescue and
    27  life saving or ambulance apparatus or buildings and grounds of
    28  such fire company upon the authorization of the chief, squad
    29  leader or corps president or other person in charge, or while
    30  answering any emergency call for any purpose, or while riding
    19750H0713B3721                  - 5 -

     1  upon the fire, rescue and life saving or ambulance apparatus
     2  owned or used by the fire companies, rescue and life saving
     3  squads, or ambulance corps of which they are members, at any
     4  time, or while performing any other duties of such ambulance
     5  corps, rescue and life saving squads, companies or fire
     6  department authorized by such cities, boroughs, incorporated
     7  towns and townships, or while performing duties imposed by
     8  section 15 of the act, approved April 27, 1927 (P.L.465,
     9  No.299), entitled, as amended, "An act to provide for the safety
    10  of persons employed, housed, or assembled in certain buildings
    11  and structures not in cities of the first class, second class,
    12  and second class A, by requiring certain construction and ways
    13  of egress, equipment, and maintenance; providing for the
    14  licensing of projectionists, except in cities of the first class
    15  and second class; requiring the submission of plans for
    16  examination and approval; providing for the promulgation of
    17  rules and regulations for the enforcement of this act; providing
    18  for the enforcement of this act by the Department of Labor and
    19  Industry and, in certain cases, by the chiefs of fire
    20  departments in cities of the third class; providing penalties
    21  for violations of the provisions of this act; and repealing
    22  certain acts," as amended; and there shall be included all
    23  individuals who extinguish forest fires and are entitled to
    24  compensation therefor, as determined by authorized officers of
    25  the Department of Environmental Resources, and such individuals
    26  are hereby declared to be "forest fire fighters" and "employes"
    27  of the department for all the purposes of this act, and shall be
    28  entitled to receive compensation in case of injuries received
    29  while actually engaged in extinguishing forest fires or while
    30  going to or returning from forest fires or while performing any
    19750H0713B3721                  - 6 -

     1  other duties in connection with extinguishing forest fires
     2  authorized or ratified by the department's officers.
     3     In all cases where an injury compensable under the provisions
     4  of this act is received by a member of a volunteer ambulance
     5  corps, volunteer rescue and life saving squad, volunteer fire
     6  company, or volunteer fire department or by a forest fire
     7  fighter of the department whether employed, self-employed, or
     8  unemployed, there is an irrebuttable presumption that his wages
     9  shall be at least equal to the Statewide average weekly wage for
    10  the purposes of computing his compensation under sections 306
    11  and 307 of this act.
    12     SECTION 3.  SECTION 18, ACT OF DECEMBER 5, 1974 (P.L.782,      <--
    13  NO.263), ENTITLED "AN ACT AMENDING THE ACT OF JUNE 2, 1915
    14  (P.L.736, NO.338), ENTITLED, AS AMENDED, 'AN ACT DEFINING THE
    15  LIABILITY OF AN EMPLOYER TO PAY DAMAGES FOR INJURIES RECEIVED BY
    16  AN EMPLOYE IN THE COURSE OF EMPLOYMENT; ESTABLISHING AN ELECTIVE
    17  SCHEDULE OF COMPENSATION; PROVIDING PROCEDURE FOR THE
    18  DETERMINATION OF LIABILITY AND COMPENSATION THEREUNDER; AND
    19  PRESCRIBING PENALTIES,' FURTHER DEFINING 'MAXIMUM WEEKLY
    20  COMPENSATION PAYABLE' AND 'THE MAXIMUM COMPENSATION PAYABLE PER
    21  WEEK'; MAKING THE ACT COMPULSORY AND PROVIDING FOR ACTIONS AT
    22  LAW FOR DAMAGES FOR CERTAIN NONCOMPLIANCE; PROVIDING FOR
    23  EXTRATERRITORIAL COVERAGE; CHANGING THE WAITING PERIOD AND
    24  PAYMENTS IN CONNECTION THEREWITH, COMPUTATION AND DISTRIBUTION
    25  OF CERTAIN COMPENSATION AND AGRICULTURAL LABOR COVERAGE; AND
    26  INCORPORATING CERTAIN EXISTING COVERAGES WITH CHANGES AS TO
    27  COMPUTATION OF COMPENSATION THEREUNDER," IS REPEALED.
    28     Section 2. 4. 3.  This act shall take effect immediately.      <--


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