PRINTER'S NO. 3832
No. 2629 Session of 2002
INTRODUCED BY VEON, THOMAS, CALTAGIRONE, LESCOVITZ, CASORIO, BELARDI, ROONEY, GEORGE, CAWLEY, JAMES, DeWEESE, DeLUCA, STABACK, SANTONI, MARKOSEK, HORSEY, GRUCELA, COSTA, SOLOBAY, WOJNAROSKI, CRUZ, HARHAI, SHANER, KELLER, J. EVANS, MELIO, McCALL, BELFANTI, JOSEPHS, J. TAYLOR, LAUGHLIN, TRELLO, LEVDANSKY, PALLONE, HERSHEY, YOUNGBLOOD, MANDERINO, TIGUE, DALEY, DERMODY, BEBKO-JONES, STEELMAN, CORRIGAN, SCRIMENTI, FREEMAN AND HESS, MAY 6, 2002
REFERRED TO COMMITTEE ON LABOR RELATIONS, MAY 6, 2002
AN ACT 1 Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as 2 reenacted and amended, "An act defining the liability of an 3 employer to pay damages for injuries received by an employe 4 in the course of employment; establishing an elective 5 schedule of compensation; providing procedure for the 6 determination of liability and compensation thereunder; and 7 prescribing penalties," further providing for safety 8 committees; imposing duties on the Department of Labor and 9 Industry; establishing a grant program for safety and health 10 education; identifying extrahazardous employers; and imposing 11 penalties. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. Section 1002 of the act of June 2, 1915 (P.L.736, 15 No.338), known as the Workers' Compensation Act, reenacted and 16 amended June 2, 1939 (P.L.520, No.281) and amended June 24, 1996 17 (P.L.350, No.57), is amended to read: 18 Section 1002. (a) An insured employer may make application 19 to the department for the certification of any established
1 safety committee operative within its workplace developed for 2 the purpose of hazard detection and accident prevention. The 3 department shall develop such certification criteria. 4 (b) Upon the renewal of the employer's workers' compensation 5 policy [next following receipt of department certification], the 6 employer shall receive a [five] seven per centum discount in the 7 rate or rates applicable to the policy [for a period of one 8 year. The five per centum discount shall continue for a total of 9 five years if the employer, by affidavit, provides annual 10 verification to the department and to the employer's insurer 11 that the safety committee continues to be operative and 12 continues to meet the certification requirements.] after all 13 other rating factors are applied to the policy, provided that 14 the employer maintains a certified safety committee and provides 15 a copy of the current department certification to the insurer. 16 (c) The secretary may certify upon application that health 17 and safety committees established under a collective bargaining 18 agreement meet the minimum purposes and intent of the standards 19 established by the secretary and are thereby exempt from the 20 specific requirements of standards established by the secretary. 21 Certification shall be granted only upon written application 22 signed by the collective bargaining agent and the employer. The 23 standards established by the secretary shall be construed as 24 creating minimum requirements, and no collective bargaining 25 agreements which establish additional duties and 26 responsibilities for the health and safety committee shall be 27 deemed to be in conflict with those standards. 28 Section 2. The act is amended by adding sections to read: 29 Section 1003. (a) (1) The department shall collect and 30 serve as a repository for statistical information on workers' 20020H2629B3832 - 2 -
1 health and safety. The department shall analyze and use the 2 information to identify and assign priorities to safety needs 3 and to better coordinate the safety service provided by public 4 or private organizations, health and safety through educational 5 programs and other innovative programs developed by the 6 department. 7 (2) The department shall coordinate or supervise the 8 collection of information relating to job safety by Federal or 9 State entities, including information collected for the 10 supplementary data system and the annual survey for the Bureau 11 of Labor Statistics of the United States Department of Labor. 12 (b) With the approval of the secretary, the department may 13 enter into contracts with the Federal Government to perform 14 occupational safety projects and may apply for funds from the 15 Federal Government through any Federal program relating to 16 occupational safety. 17 (c) The secretary shall establish a grant program to provide 18 occupational safety and health education and training services 19 concerning the prevention of occupational diseases and injuries 20 to employes and employers at locations throughout this 21 Commonwealth. The department shall follow standard requirements 22 that may be applicable or may promulgate rules and regulations, 23 establish procedures and criteria necessary and appropriate to 24 carry out this subsection, including, but not limited to, 25 criteria for the evaluation and selection of applications for 26 grants and the auditing of performance thereunder. 27 (d) The department shall publish or procure and issue or 28 make available educational books, pamphlets, brochures, films, 29 videotapes, and other informational and educational material 30 directed to high-risk industries and employers and shall 20020H2629B3832 - 3 -
1 specifically address means and methods of avoiding common 2 workers' injuries. Specific decisions as to what issues and 3 problems should be addressed by such information shall be made 4 by the department after assigning appropriate priorities based 5 on frequency of injuries, degree of hazard, severity of injuries 6 and similar considerations. Such educational materials shall 7 include specific references to the requirements of Federal and 8 State laws and regulations, to recommendations and practices of 9 business, industry, and trade associations, and, where needed, 10 to recommend work practices based on recommendations made by the 11 department for the prevention of injury. 12 (e) (1) The department shall cooperate with business and 13 industry trade associations, labor organizations and other 14 entities to develop means and methods of educating employes and 15 employers with regard to workplace safety. 16 (2) The department shall cooperate with other entities in 17 the development and approval of safety courses, safety plans and 18 safety programs. 19 (f) The department shall advise insurance carrier loss 20 control service organizations of hazard classifications, 21 specific employers, industries, occupations or geographic 22 regions to which loss control services should be directed or of 23 the identity and types of injuries or occupational diseases and 24 means and methods for prevention of the same to which loss 25 control services should be directed and shall advise insurance 26 carrier loss control service organizations of safety needs and 27 priorities developed by the department. 28 Section 1004. (a) The department shall establish and 29 maintain a job safety information system. The department shall 30 obtain from any State agency, including specifically the 20020H2629B3832 - 4 -
1 Department of Health and the Insurance Department, data and 2 statistics including specifically those compiled for the purpose 3 of ratemaking. The department shall consult with the Insurance 4 Department in the design of data information and retrieval 5 systems that will accomplish the mutual purposes of the 6 Insurance Department and of the department. The Department of 7 Health, the Insurance Department and all other departments, 8 agencies, bureaus, boards and commissions of the Commonwealth, 9 and rating bureaus approved by the Insurance Commissioner shall 10 cooperate with the department in furtherance of the purposes of 11 this article. 12 (b) Employers shall file with the department a report as 13 required by section 438 of this act. 14 (c) The job safety information system shall include a 15 comprehensive data base that incorporates all pertinent 16 information relating to each reported injury, including, but not 17 limited to: 18 (1) Age, sex, wage level, occupation, and insurance company 19 payroll classification code of the injured employe. 20 (2) The nature, source and severity of the injury. 21 (3) The reported cause of the injury. 22 (4) The part of the body affected. 23 (5) Any equipment involved in the injury. 24 (6) The prior loss history of the employer. 25 (7) The standard industrial classification code of the 26 employer. 27 (8) Any other information deemed useful for the purpose of 28 statistical analysis. 29 (d) The identity of an employe shall be confidential and may 30 not be disclosed as part of the job safety information system. 20020H2629B3832 - 5 -
1 Section 1005. (a) The department shall develop a program 2 for identifying extrahazardous employers and shall notify each 3 identified extrahazardous employer and its insurance carrier 4 that the employer has been identified as an extrahazardous 5 employer. 6 (b) An employer that receives notification under this 7 section shall obtain a safety consultation within thirty (30) 8 days from the department or a safety consultant approved by the 9 department. A written report by the safety consultant shall be 10 filed with the department and the employer specifying any 11 hazardous condition or practice identified by the safety 12 consultant. 13 (c) A safety consultant referred to in this section shall be 14 trained in the field of occupational safety and occupational 15 health, where appropriate, depending upon the nature of the 16 employer's establishment and the types of safety and health 17 hazards identified therein. The consultant shall have a least 18 three (3) years' experience in developing workplace accident and 19 illness prevention plans and be: 20 (1) an industrial hygienist; 21 (2) a safety professional; or 22 (3) an individual who has completed a certified training 23 program in accident or illness prevention services approved by 24 the department. 25 (d) An employer that receives notification under this 26 section must obtain a safety and health consultation from either 27 the department or a safety and health consultant approved by the 28 department within thirty (30) days of notification. Within sixty 29 (60) days of an employer's receipt of notification pursuant to 30 this section, a written report prepared by either the department 20020H2629B3832 - 6 -
1 or a safety and health consultant shall be filed with the 2 department and with the employer. The report shall set forth any 3 hazardous conditions or practices identified by the safety and 4 health consultation. Said report shall also formulate a specific 5 accident and illness prevention plan addressing the hazardous 6 conditions or practices identified by said report. 7 (e) An employer shall comply with any accident and illness 8 prevention plan submitted to it under subsection (d) of this 9 section. 10 (f) Six (6) months after the filing of an accident and 11 illness prevention plan prescribed by subsection (d) of this 12 section, the department shall inspect the employer's premises to 13 evaluate compliance with the plan. The department may require 14 the participation of the safety and health consultant who 15 performed the initial consultation and formulated the plan. If 16 the department determines that the employer has complied with 17 the terms of the plan or has implemented other acceptable 18 corrective measures, the department shall certify that 19 determination. 20 (g) Failure to obtain or implement an accident and illness 21 prevention plan as required by this section shall constitute a 22 continuing civil violation subject to a maximum fine of two 23 thousand dollars ($2,000) per day for each day. Each day of 24 noncompliance with this section shall be a separate violation. 25 All fines recovered under this section shall be paid to the 26 department and deposited by the department into a restricted 27 account to be established in the Workmen's Compensation 28 Administration Fund created by section 446 of this act. The 29 restricted account shall be known as the Health and Safety 30 Account. 20020H2629B3832 - 7 -
1 (h) If at the time of the follow-up inspection by the 2 consultant required under this section, the employer continues 3 to be an extrahazardous employer, the department shall continue 4 to monitor the safety conditions at the worksite, including 5 conducting safety and health inspections where necessary and may 6 formulate additional safety plans reasonably calculated to abate 7 hazards. The employer shall comply with such plans and is 8 subject to additional penalties for failure to implement the 9 plan or plans. 10 (i) The department may investigate accidents occurring at 11 the worksites of an employer for whom a plan has been formulated 12 under this section, and the department may otherwise monitor the 13 implementation of the accident and illness prevention plan as it 14 finds necessary. 15 (j) The department may, at any time during its monitoring of 16 an employer's compliance with an accident and illness prevention 17 plan or additional safety plan formulated by the department 18 under this section, seek an injunction in a court of competent 19 jurisdiction if the department determines: 20 (1) That there exists imminent danger resulting in serious 21 injury or death to any employe due to a hazardous workplace 22 condition or practice. 23 (2) That the employer is not complying with the accident and 24 illness prevention plan or additional safety plan formulated by 25 the department. 26 (k) The department's identification of an employer as an 27 extrahazardous employer under this section shall be inadmissible 28 as evidence in any judicial proceeding. 29 (l) As used in this section, "extrahazardous employer" means 30 an employer whose injury frequency is within the worst five per 20020H2629B3832 - 8 -
1 centum of those employers as compared to other industry as 2 determined by the most discreet classification by the standard 3 industrial code for that industry for which the employer is 4 engaged in substantially similar employment. 5 Section 1006. (a) Notwithstanding any other provision of 6 law, an insurance company desiring to write workers' 7 compensation insurance in this Commonwealth shall maintain or 8 provide accident prevention facilities as a prerequisite for a 9 license to write such insurance. Proof of compliance with this 10 section shall be provided to the Insurance Commissioner. Such 11 facilities shall be adequate to furnish accident prevention 12 required by the nature of its business or its policyholders' 13 operations and shall include surveys, recommendations, training 14 programs, consultations, analyses of accident causes, industrial 15 hygiene and industrial health services to implement the program 16 of accident prevention services. The insurance company, pursuant 17 to its responsibilities under this section, shall employ or 18 otherwise make available qualified accident and illness 19 prevention personnel. Said personnel shall meet the 20 qualifications set forth in regulations issued by the 21 department. 22 (b) A self-insured employer shall maintain an accident and 23 illness prevention program as a prerequisite for retention of 24 its self-insured status. Such program shall be adequate to 25 furnish accident prevention required by the nature of its 26 business and shall include surveys, recommendations, training 27 programs, consultations, analyses of accident causes, industrial 28 hygiene and industrial health services. The self-insured 29 employer, pursuant to its responsibilities under this section, 30 shall employ or otherwise make available qualified accident and 20020H2629B3832 - 9 -
1 illness prevention personnel. These personnel shall meet the 2 qualifications set forth in regulations issued by the 3 department. 4 (c) The department may conduct inspections to determine the 5 adequacy of the injury prevention services required by this 6 section at least once every two (2) years for each insurer. 7 (d) Notice that services required by this section are 8 available to the employer from an insurance company must appear 9 in no less than ten-point bold type on the front of each 10 workers' compensation insurance policy delivered or issued for 11 delivery in this Commonwealth. 12 (e) At least once each year, each insurance company must 13 submit to the department detailed information on the type of 14 accident prevention services offered or provided to the 15 insurance company's policyholders. The information must include: 16 (1) The amount of money spent by the insurance company on 17 accident prevention services. 18 (2) The number and qualifications of field safety 19 representatives employed by the insurance company. 20 (3) The number of site inspections performed. 21 (4) Any accident prevention services for which the insurance 22 company contracts. 23 (5) A breakdown of the premium size of the risks to which 24 the insurance company provided services. 25 (6) Evidence of the effectiveness of and accomplishments in 26 accident prevention. 27 (7) Any additional information required by the department. 28 (f) Failure to maintain or provide the injury prevention 29 services required by this section shall constitute a continuing 30 civil violation subject to a maximum fine of two thousand 20020H2629B3832 - 10 -
1 dollars ($2,000) per day for each day the accident prevention 2 services are not maintained or provided. Each day of 3 noncompliance with this section shall be a separate violation. 4 All fines recovered under this section shall be paid to the 5 department and deposited by the department into the health and 6 safety account established in section 1005(g) of this act. 7 (g) The department shall decide all resolutions of disputes 8 between insurers and insureds relating to qualification of a 9 loss control program that complies with this act. 10 Section 1007. In addition to any other assessment authorized 11 by section 446 of this act, the department shall include in the 12 section 446 assessment an amount necessary to administer and 13 enforce the provisions of this article including the safety and 14 health grant program. 15 Section 1008. The department may promulgate rules and 16 regulations for the administration and enforcement of this 17 article. 18 Section 3. This act shall take effect in 60 days. D20L77MRD/20020H2629B3832 - 11 -