SENATE AMENDED
        PRIOR PRINTER'S NOS. 807, 3676, 3721          PRINTER'S NO. 3762

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 THIRD CONSIDERATION, IN SENATE,
           SEPTEMBER 27, 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  MAKING AN APPROPRIATION TO THE DEPARTMENT OF LABOR AND INDUSTRY   <--
    14     FOR WORKMEN'S COMPENSATION PAYMENT.

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


     1     SECTION 306.  THE FOLLOWING SCHEDULE OF COMPENSATION IS
     2  HEREBY ESTABLISHED:
     3     * * *
     4     (C)  * * *
     5     COMPENSATION UNDER PARAGRAPHS (1) THROUGH (24) OF THIS CLAUSE
     6  SHALL NOT BE MORE THAN THE MAXIMUM COMPENSATION PAYABLE NOR LESS
     7  THAN FIFTY PER CENTUM OF THE MAXIMUM COMPENSATION PAYABLE PER
     8  WEEK [FOR TOTAL DISABILITY AS PROVIDED IN SUBSECTION (A) OF THIS
     9  SECTION, BUT IN NO EVENT MORE THAN THE STATEWIDE AVERAGE WEEKLY
    10  WAGE].
    11     * * *
    12     (H)  ANY PERSON RECEIVING COMPENSATION UNDER SECTIONS 306(A),
    13  306(B), 306(C)(23), OR SECTION 307, AS A RESULT OF AN ACCIDENT
    14  WHICH OCCURRED PRIOR TO THE EFFECTIVE DATE OF THE AMENDATORY ACT
    15  OF JANUARY 17, 1968 (P.L.6, NO.4) SHALL HAVE [THE] HIS
    16  COMPENSATION [RATE] ADJUSTED TO [THE LEVEL THEY] THAT WHICH HE
    17  WOULD HAVE RECEIVED HAD THE INJURY OCCURRED ON THE EFFECTIVE
    18  DATE OF THE AMENDATORY ACT OF JANUARY 17, 1968 (P.L.6, NO.4) AND
    19  HAD THE INJURED EMPLOYE BEEN EARNING WAGES EQUAL TO NINETY
    20  DOLLARS ($90) PER WEEK. IN CASES WHERE THE INJURED EMPLOYE HAD
    21  BEEN EARNING WAGES GREATER THAN NINETY DOLLARS ($90) PER WEEK,
    22  THOSE WAGES SHALL CONTINUE TO BE USED IN THE CALCULATION OF
    23  COMPENSATION. THE ADDITIONAL COMPENSATION SHALL BE PAID BY THE
    24  SELF-INSURED EMPLOYER OR INSURANCE CARRIER MAKING PAYMENT AND
    25  SHALL BE REIMBURSED IN ADVANCE BY THE COMMONWEALTH ON A
    26  QUARTERLY BASIS AS PROVIDED IN RULES AND REGULATIONS OF THE
    27  DEPARTMENT. THE PAYMENT OF ADDITIONAL COMPENSATION SHALL BE MADE
    28  BY THE CARRIER OR SELF-INSURED EMPLOYER ONLY DURING THOSE FISCAL
    29  YEARS FOR WHICH [APPROPRIATIONS ARE MADE TO COVER REIMBURSEMENT]
    30  SUFFICIENT MONEYS ARE AVAILABLE IN THE WORKMEN'S COMPENSATION
    19750H0713B3762                  - 2 -

     1  SUPPLEMENTAL PAYMENT FUND TO COVER THE COST OF SUCH
     2  REIMBURSEMENT.
     3     (I)  THE WORKMEN'S COMPENSATION SUPPLEMENTAL PAYMENT FUND IS
     4  HEREBY ESTABLISHED IN THE STATE TREASURY, SEPARATE AND APART
     5  FROM ALL OTHER PUBLIC MONEYS OR FUNDS OF THIS COMMONWEALTH. THE
     6  PURPOSE OF THIS FUND SHALL BE TO PROVIDE MONEYS FOR PAYMENTS
     7  PURSUANT TO SUBSECTION (H). THE DEPARTMENT SHALL BE CHARGED WITH
     8  THE MAINTENANCE AND CONSERVATION OF THIS FUND. THE FUND SHALL BE
     9  MAINTAINED BY ANNUAL ASSESSMENTS ON INSURERS AND SELF-INSURERS
    10  UNDER THIS ACT, INCLUDING THE STATE WORKMEN'S INSURANCE FUND.
    11  THE DEPARTMENT SHALL MAKE ASSESSMENTS AND COLLECT MONEYS
    12  PURSUANT TO THIS SECTION. THE ASSESSMENT SHALL BE TWO AND FIVE-
    13  TENTHS PER CENTUM OF THE TOTAL COMPENSATION PAID BY EACH
    14  INSURER, SELF-INSURER, AND THE STATE WORKMEN'S INSURANCE FUND IN
    15  THE CALENDAR YEAR PRECEDING THE YEAR IN WHICH THE ASSESSMENT IS
    16  MADE: PROVIDED, THAT THE FIRST ASSESSMENT MADE UNDER THIS ACT
    17  FOR THE FISCAL YEAR COMMENCING JULY 1, 1975 1976 AND ENDING
    18  SEPTEMBER 30, 1976 JUNE 30, 1977 SHALL BE AT THE RATE OF TWO AND  <--
    19  EIGHT-TENTHS PER CENTUM OF TOTAL COMPENSATION PAID DURING THE
    20  CALENDAR YEAR 1974 1975. THE DEPARTMENT SHALL GIVE NOTICE TO
    21  EVERY INSURER AND SELF-INSURER UNDER THIS ACT, INCLUDING THE
    22  STATE WORKMEN'S INSURANCE FUND, OF THE AMOUNT ASSESSED AGAINST
    23  SUCH INSURER, SELF-INSURER, OR THE STATE WORKMEN'S INSURANCE
    24  FUND ON OR BEFORE JUNE 30 OF THE YEAR FOLLOWING THE YEAR UPON
    25  WHICH THE ASSESSMENT IS BASED. PAYMENT OF ASSESSMENTS SHALL BE
    26  MADE TO THE DEPARTMENT WITHIN THIRTY DAYS OF RECEIPT OF NOTICE
    27  OF THE AMOUNT ASSESSED: PROVIDED, THAT NOTICE OF THE FIRST
    28  ANNUAL ASSESSMENT UNDER THIS ACT SHALL BE GIVEN TO EVERY INSURER
    29  AND SELF-INSURER UNDER THIS ACT, INCLUDING THE STATE WORKMEN'S
    30  INSURANCE FUND, WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS
    19750H0713B3762                  - 3 -

     1  AMENDING ACT.
     2     THE FUND SHALL BE SUBJECT TO AUDIT BY THE AUDITOR GENERAL AND
     3  A COPY OF THE REPORT OF THE AUDIT FURNISHED TO ASSESSED INSURERS
     4  AND SELF-INSURERS UPON REQUEST.
     5     THE SECRETARY OF LABOR AND INDUSTRY SHALL BE THE
     6  ADMINISTRATOR OF THE FUND AND SHALL HAVE THE POWER TO DISPENSE
     7  AND DISBURSE MONEYS FROM THE FUND FOR THE PURPOSE OF PAYMENTS
     8  MADE PURSUANT TO THIS SECTION. ALL MONEYS IN THE FUND AS ARE
     9  REQUIRED TO CARRY OUT THE PURPOSES OF THIS SECTION ARE HEREBY
    10  SPECIFICALLY APPROPRIATED TO THE DEPARTMENT OF LABOR AND
    11  INDUSTRY. THE STATE TREASURER SHALL BE CUSTODIAN OF THE FUND.
    12     (J)  UNTIL SUCH TIME AS A SUFFICIENT CASH BALANCE SHALL EXIST  <--
    13  IN THE WORKMEN'S COMPENSATION SUPPLEMENTAL PAYMENT FUND TO MEET
    14  PROMPTLY THE EXPENSES OF THE COMMONWEALTH PAYABLE FROM SUCH
    15  FUND, THE STATE TREASURER IS HEREBY AUTHORIZED AND DIRECTED,
    16  FROM TIME TO TIME, TO TRANSFER TO THE WORKMEN'S COMPENSATION
    17  SUPPLEMENTAL PAYMENT FUND IF THE SAME BE DEFICIENT, FROM THE
    18  GENERAL FUND, SUCH SUMS AS THE GOVERNOR SHALL DIRECT. ANY SUMS
    19  SO TRANSFERRED SHALL BE AVAILABLE FOR THE PURPOSES FOR WHICH THE
    20  FUND TO WHICH THEY ARE TRANSFERRED IS APPROPRIATED BY LAW. SUCH
    21  TRANSFERS SHALL BE MADE HEREUNDER UPON WARRANT OF THE STATE
    22  TREASURER UPON REQUISITION OF THE GOVERNOR.
    23     IN ORDER TO REIMBURSE THE GENERAL FUND FOR SUCH TRANSFERS, AN
    24  AMOUNT EQUAL TO THAT TRANSFERRED FROM THE GENERAL FUND DURING
    25  ANY FISCAL PERIOD SHALL BE RETRANSFERRED TO THE GENERAL FUND
    26  FROM THE WORKMEN'S COMPENSATION SUPPLEMENTAL PAYMENT FUND IN
    27  SUCH AMOUNTS AND AT SUCH TIMES AS THE GOVERNOR SHALL DIRECT, BUT
    28  IN NO EVENT LATER THAN THIRTY DAYS AFTER THE END OF SUCH FISCAL
    29  PERIOD. SUCH TRANSFERS SHALL BE MADE HEREUNDER UPON WARRANT OF
    30  THE STATE TREASURER UPON REQUISITION OF THE GOVERNOR.
    19750H0713B3762                  - 4 -

     1     THE MONEYS IN THE GENERAL FUND AND IN THE WORKMEN'S
     2  COMPENSATION SUPPLEMENTAL PAYMENT FUND ARE HEREBY SPECIFICALLY
     3  APPROPRIATED FOR TRANSFER FROM TIME TO TIME AS PROVIDED FOR IN
     4  THIS ACT.
     5     Section 1. 2.  Section 601, act of June 2, 1915 (P.L.736,
     6  No.338), known as "The Pennsylvania Workmen's Compensation Act,"
     7  OF THE ACT, added December 5, 1974 (P.L.782, No.263), is amended  <--
     8  to read:
     9     Section 601.  In addition to those persons included within
    10  the definition of the word "employe" as defined in section 104
    11  of this act, there shall be included all members of volunteer
    12  ambulance corps, volunteer rescue and life saving squads,
    13  volunteer fire companies or volunteer fire departments of the
    14  various cities, boroughs, incorporated towns, and townships, who
    15  shall be and are hereby declared to be "employes" of such
    16  cities, boroughs, incorporated towns, townships, for all the
    17  purposes of this act, and shall be entitled to receive
    18  compensation in case of injuries received while actually engaged
    19  as ambulance corpsmen, rescue and life saving service squad
    20  members or firemen or while going to or returning from any fire
    21  which the fire companies or ambulance corps or rescue and life
    22  saving squad or fire department of which they are members shall
    23  have attended, or while participating in instruction fire,
    24  rescue and life saving or ambulance drills in which the fire
    25  company, rescue and life saving squad, or ambulance corps of
    26  which they are members shall have participated, or while
    27  repairing or doing other work about or on the fire, rescue and
    28  life saving or ambulance apparatus or buildings and grounds of
    29  such fire company upon the authorization of the chief, squad
    30  leader or corps president or other person in charge, or while
    19750H0713B3762                  - 5 -

     1  answering any emergency call for any purpose, or while riding
     2  upon the fire, rescue and life saving or ambulance apparatus
     3  owned or used by the fire companies, rescue and life saving
     4  squads, or ambulance corps of which they are members, at any
     5  time, or while performing any other duties of such ambulance
     6  corps, rescue and life saving squads, companies or fire
     7  department authorized by such cities, boroughs, incorporated
     8  towns and townships, or while performing duties imposed by
     9  section 15 of the act, approved April 27, 1927 (P.L.465,
    10  No.299), entitled, as amended, "An act to provide for the safety
    11  of persons employed, housed, or assembled in certain buildings
    12  and structures not in cities of the first class, second class,
    13  and second class A, by requiring certain construction and ways
    14  of egress, equipment, and maintenance; providing for the
    15  licensing of projectionists, except in cities of the first class
    16  and second class; requiring the submission of plans for
    17  examination and approval; providing for the promulgation of
    18  rules and regulations for the enforcement of this act; providing
    19  for the enforcement of this act by the Department of Labor and
    20  Industry and, in certain cases, by the chiefs of fire
    21  departments in cities of the third class; providing penalties
    22  for violations of the provisions of this act; and repealing
    23  certain acts," as amended; and there shall be included all
    24  individuals who extinguish forest fires and are entitled to
    25  compensation therefor, as determined by authorized officers of
    26  the Department of Environmental Resources, and such individuals
    27  are hereby declared to be "forest fire fighters" and "employes"
    28  of the department for all the purposes of this act, and shall be
    29  entitled to receive compensation in case of injuries received
    30  while actually engaged in extinguishing forest fires or while
    19750H0713B3762                  - 6 -

     1  going to or returning from forest fires or while performing any
     2  other duties in connection with extinguishing forest fires
     3  authorized or ratified by the department's officers.
     4     In all cases where an injury compensable under the provisions
     5  of this act is received by a member of a volunteer ambulance
     6  corps, volunteer rescue and life saving squad, volunteer fire
     7  company, or volunteer fire department or by a forest fire
     8  fighter of the department whether employed, self-employed, or
     9  unemployed, there is an irrebuttable presumption that his wages
    10  shall be at least equal to the Statewide average weekly wage for
    11  the purposes of computing his compensation under sections 306
    12  and 307 of this act.
    13     SECTION 3.  SECTION 18, ACT OF DECEMBER 5, 1974 (P.L.782,      <--
    14  NO.263), ENTITLED "AN ACT AMENDING THE ACT OF JUNE 2, 1915
    15  (P.L.736, NO.338), ENTITLED, AS AMENDED, 'AN ACT DEFINING THE
    16  LIABILITY OF AN EMPLOYER TO PAY DAMAGES FOR INJURIES RECEIVED BY
    17  AN EMPLOYE IN THE COURSE OF EMPLOYMENT; ESTABLISHING AN ELECTIVE
    18  SCHEDULE OF COMPENSATION; PROVIDING PROCEDURE FOR THE
    19  DETERMINATION OF LIABILITY AND COMPENSATION THEREUNDER; AND
    20  PRESCRIBING PENALTIES,' FURTHER DEFINING 'MAXIMUM WEEKLY
    21  COMPENSATION PAYABLE' AND 'THE MAXIMUM COMPENSATION PAYABLE PER
    22  WEEK'; MAKING THE ACT COMPULSORY AND PROVIDING FOR ACTIONS AT
    23  LAW FOR DAMAGES FOR CERTAIN NONCOMPLIANCE; PROVIDING FOR
    24  EXTRATERRITORIAL COVERAGE; CHANGING THE WAITING PERIOD AND
    25  PAYMENTS IN CONNECTION THEREWITH, COMPUTATION AND DISTRIBUTION
    26  OF CERTAIN COMPENSATION AND AGRICULTURAL LABOR COVERAGE; AND
    27  INCORPORATING CERTAIN EXISTING COVERAGES WITH CHANGES AS TO
    28  COMPUTATION OF COMPENSATION THEREUNDER," IS REPEALED.
    29     Section 2. 4. 3.  This act shall take effect immediately.
    30     SECTION 1.  THE SUM OF $2,350,000, OR AS MUCH THEREOF AS MAY   <--
    19750H0713B3762                  - 7 -

     1  BE NECESSARY, IS HEREBY APPROPRIATED TO THE DEPARTMENT OF LABOR
     2  AND INDUSTRY FOR THE FISCAL YEAR JULY 1, 1976 TO JUNE 30, 1977
     3  TO CARRY OUT THE PROVISIONS OF SECTION 306(H) OF THE ACT OF JUNE
     4  2, 1915 (P.L.736, NO.338), KNOWN AS "THE PENNSYLVANIA WORKMEN'S
     5  COMPENSATION ACT."
     6     SECTION 2.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
















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