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 -