SENATE AMENDED PRIOR PRINTER'S NOS. 4162, 4191, 4364 PRINTER'S NO. 4637
No. 2738 Session of 2006
INTRODUCED BY ALLEN, COHEN, PERZEL, EACHUS, PHILLIPS, S. H. SMITH, BAKER, BALDWIN, BASTIAN, BENNINGHOFF, BIRMELIN, BOYD, BUNT, BUXTON, CAPPELLI, CAUSER, CRAHALLA, DENLINGER, FLEAGLE, GEORGE, GILLESPIE, GOOD, GOODMAN, HARRIS, HENNESSEY, HERSHEY, HESS, HICKERNELL, HUTCHINSON, KAUFFMAN, KOTIK, LEACH, MACKERETH, MARKOSEK, McCALL, McILHATTAN, METCALFE, R. MILLER, MUSTIO, NICKOL, PICKETT, PYLE, REED, REICHLEY, SABATINA, SATHER, SCAVELLO, SCHRODER, STEIL, STERN, R. STEVENSON, TANGRETTI, E. Z. TAYLOR, TIGUE, TRUE, WALKO, WANSACZ, WILT, ADOLPH, GERBER, DALLY, JOSEPHS, KENNEY, SIPTROTH, GEIST, BEYER, GRELL, CLYMER AND GINGRICH, JUNE 7, 2006
SENATOR GORDNER, LABOR AND INDUSTRY, IN SENATE, AS AMENDED, SEPTEMBER 26, 2006
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 schedule of 8 compensation, for definitions relating to procedure and for 9 enforcement of standards and processing of claims; providing 10 for the Workers' Compensation Appeal Board; further providing 11 for assignment of claims to referees, for rehearings, AND for <-- 12 counsel fees and for the Office of Adjudication; providing <-- 13 for an Uninsured Employers Guaranty Fund; and making a 14 related repeal. 15 The General Assembly of the Commonwealth of Pennsylvania 16 hereby enacts as follows: 17 Section 1. Section 306(h) of the act of June 2, 1915 18 (P.L.736, No.338), known as the Workers' Compensation Act,
1 reenacted and amended June 21, 1939 (P.L.520, No.281) and added 2 December 5, 1974 (P.L.782, No.263), is amended to read: 3 Section 306. The following schedule of compensation is 4 hereby established: 5 * * * 6 (h) Any person receiving compensation under sections 306(a), 7 [306(b), 306(c)(23), or section] 306(c)(23) or 307, as a result 8 of an [accident] injury which occurred prior to [the effective 9 date of the amendatory act of January 17, 1968 (P.L.6, No.4) 10 shall have the compensation rate adjusted to the level they 11 would have received had the injury occurred on the effective 12 date of the amendatory act of January 17, 1968 (P.L.6, No.4) and 13 had the injured employe been earning wages equal to ninety 14 dollars ($90) per week.] August 31, 1993, shall, beginning July <-- 15 1, 2006 JANUARY 1, 2007, receive a minimum amount of one hundred <-- 16 dollars ($100) per week. The additional compensation shall be 17 paid by the self-insured employer or insurance carrier making 18 payment and shall be reimbursed in advance by the Commonwealth 19 on a quarterly basis as provided in rules and regulations of the 20 department. The payment of additional compensation shall be made 21 by the carrier or self-insured employer only during those fiscal 22 years for which appropriations are made to cover reimbursement. 23 Section 2. Section 401 of the act, amended February 8, 1972 24 (P.L.25, No.12), July 2, 1993 (P.L.190, No.44) and June 24, 1996 25 (P.L.350, No.57), is amended to read: 26 Section 401. The term "referee," when used in this act, 27 shall mean a Workers' Compensation Judge of the Department of 28 Labor and Industry, appointed by and subject to the general 29 supervision of the Secretary of Labor and Industry for the 30 purpose of conducting departmental hearings under this act. The 20060H2738B4637 - 2 -
1 secretary may establish different classes of these judges. Any 2 reference in any statute to a workmen's compensation referee 3 shall be deemed to be a reference to a workers' compensation 4 judge. 5 The term "board," when used in this article, shall mean the 6 Workers' Compensation Appeal Board, a departmental 7 administrative board as provided in sections 202, 207, 503 and 8 2208 of the act of April 9, 1929 (P.L.177), known as "The 9 Administrative Code of 1929," exercising its powers and 10 performing its duties as an appellate board independently of the 11 Secretary of Labor and Industry and any other official of the 12 department. 13 The term "fund," when used in this article, shall mean the 14 State Workmen's Insurance Fund of this Commonwealth, the State- 15 operated insurance carrier from which workmen's compensation 16 insurance policies may be purchased by employers to cover all 17 risks of liability under this act including those declined by 18 private carriers. 19 The terms "insurer" and "carrier," when used in this article, 20 shall mean the State Workmen's Insurance Fund or other insurance 21 carrier which has insured the employer's liability under this 22 act, or the employer in cases of self-insurance. 23 The term "employer," when used in this article, shall mean 24 the employer as defined in article one of this act, or his duly 25 authorized agent, or his insurer if such insurer has assumed the 26 employer's liability or the fund if the employer be insured 27 therein. 28 The term "resolution hearing," when used in this article, 29 shall mean a procedure established by the Office of Adjudication 30 with the sole purpose of providing a venue to present a 20060H2738B4637 - 3 -
1 compromise and release to a WORKERS' COMPENSATION judge in an <-- 2 expedited fashion. 3 The term "mediation," when used in this article, shall mean a 4 conference conducted by a workers' compensation judge, but not 5 necessarily the judge assigned to the actual case involving the 6 parties, and shall require the attendance in person OR BY <-- 7 TELECONFERENCE of all parties including the claimant and 8 employer, and their respective counsel. The representative from <-- 9 the employer must have requisite authority to bring about 10 settlement of the case or must have the ability to obtain said 11 authority during the course of the mediation., IF ANY. ALL <-- 12 PARTIES SHALL HAVE REQUISITE AUTHORITY TO ACCEPT, MODIFY OR 13 REJECT SETTLEMENT PROPOSALS OFFERED AT A MEDIATION, EITHER AT 14 THE MEDIATION OR WITHIN A REASONABLE TIME PERIOD AFTER THE 15 MEDIATION AS ESTABLISHED BY THE WORKERS' COMPENSATION JUDGE. 16 Section 3. Section 401.1 of the act, added February 8, 1972 17 (P.L.25, No.12), is amended to read: 18 Section 401.1. The department shall, in fulfillment of its 19 responsibilities under this act, enforce the time standards and 20 other performance standards herein provided for the prompt 21 processing of injury cases and payment of compensation when due 22 by employers and insurers both upon petition by a party or on 23 its own motion. In any case in which compensation has not been 24 timely paid, or in which notice of denial of compensation has 25 been given, the department shall hear and determine all claim 26 petitions for compensation filed by employes or their 27 dependents. The department shall also hear and determine all 28 petitions by employers or insurers to suspend, terminate, reduce 29 or otherwise modify compensation payments, awards, or agreements 30 and petitions by employes or their dependents to increase, 20060H2738B4637 - 4 -
1 modify or reinstate compensation payments, awards, or 2 agreements. Hearings shall be scheduled forthwith upon receipt 3 of the claim petition or other petition, as the case may be, and 4 determinations thereon shall be made promptly and in conformity 5 with time standards herein or hereunder established. Such 6 hearings shall be conducted by a [referee] workers' compensation 7 judge or other hearing officer designated by the secretary. 8 Each workers' compensation judge assigned to conduct hearings 9 shall set forth a mandatory trial schedule at the first hearing. 10 This trial schedule shall include specific deadlines for the 11 presentation of evidence by the parties and dates for future 12 hearings. Judges shall strictly enforce their schedules, and no 13 party will be excused from honoring the schedule absent good 14 cause shown. Every trial schedule shall include a specific date 15 and time for a mediation conference. Mediations shall take place 16 no later than thirty (30) days prior to the date set for filing 17 proposed findings of fact and conclusions of law or legal briefs 18 or memoranda, unless, upon good cause shown, the workers' 19 compensation judge determines mediation would be futile. Within 20 one hundred twenty (120) days of the effective date of this 21 paragraph, the Office of Adjudication shall create a resolution 22 hearing procedure to hear compromise and release agreements in 23 an expedited manner. The hearing shall be held within fourteen 24 (14) business days of notice of a commutation or compromise and 25 release. 26 The workers' compensation judge conducting a resolution 27 hearing will not be required to have received formal assignment 28 by the Workers' Compensation Bureau of the compromise and 29 release petition prior to conducting the resolution hearing. At 30 the time of hearing, the parties shall submit proof of filing a 20060H2738B4637 - 5 -
1 petition to the workers' compensation judge hearing the 2 compromise and release matter. A workers' compensation judge 3 shall render a decision within five (5) business days of the 4 hearing. 5 Delays in hearings will be granted according to rules 6 established by the department, and any party who unreasonably 7 delays a hearing will be subject to a penalty as provided in 8 section 435. Subject to the provisions of the act of July 31, 9 1968 (P.L.769, No.240), known as the "Commonwealth Documents 10 Law," the department shall adopt such rules and regulations as 11 it finds necessary or desirable for the enforcement of this act. 12 Section 4. The act is amended by adding a section to read: 13 Section 401.2. (a) The Workers' Compensation Appeal Board 14 shall consist of at least three, and not more than fifteen, 15 appointed members MEMBERS APPOINTED BY THE GOVERNOR, of whom the <-- 16 Governor shall designate one as chairman.; the Governor may, on <-- 17 the recommendation of the Secretary of Labor and Industry, 18 increase the number of appointed members on the board. An en 19 banc board shall consist of all the appointed members on the 20 board, a majority of which shall constitute a quorum, and no 21 action of the board shall be valid unless it shall have the 22 concurrence of such number of members and that number 23 constitutes a majority of the votes cast. Where there are more 24 than three appointed members, the board may sit in panels of 25 three, all three members shall constitute a quorum and no action 26 taken by a panel shall be valid unless it shall have the 27 concurrence of a majority of the panel members. When a majority 28 of any such panel has reached a decision, the chair of the panel 29 shall assign the writing of an opinion and order to a panel 30 member. The panel member shall prepare a draft opinion and award 20060H2738B4637 - 6 -
1 and transmit it to the secretary of the board for circulation 2 and review to all members of the Workers' Compensation Appeal 3 Board. Each member of the Workers' Compensation Appeal Board 4 shall be entitled to a period of thirty (30) days from the date 5 a draft opinion on behalf of a majority of a panel is placed in 6 circulation by the secretary of the board in which to concur in, 7 comment on, object to or dissent from the proposed draft opinion 8 and award. Concurrences, comments, objections and dissents shall 9 be transmitted to the chairman of the board, the secretary of 10 the board and the board member responsible for writing the draft 11 opinion. A board member who does not submit a written response 12 to a proposed draft opinion and order circulated shall be deemed 13 to concur in the opinion and order as drafted and initially 14 placed in circulation in conformity with the procedure set forth 15 in subsection (a). If at the conclusion of the thirty-day (30- 16 day) period a majority of the members of the board have failed 17 to concur in the draft opinion and order as circulated, the 18 Chairman of the Workers' Compensation Appeal Board, in 19 consultation with the chair of the panel that heard the case in 20 question shall reassign the opinion to a board member for the 21 purpose of redrafting and circulating a draft opinion and order 22 in conformity with the procedures articulated in this subsection 23 (a). A vacancy on the board shall not impair the right of a 24 quorum to exercise all the rights and perform all the duties of 25 the board. The Secretary of Labor and Industry, with the 26 approval of the Governor, shall appoint a secretary to the 27 Workers' Compensation Appeal Board, who shall receive such 28 salary as the Secretary of Labor and Industry, with the approval 29 of the Governor, shall determine. 30 (b) Members of the board shall be required to annually 20060H2738B4637 - 7 -
1 attend and participate in a minimum of eight (8) hours of 2 workers' compensation related education approved by the 3 Pennsylvania Supreme Court Continuing Legal Education Board or a 4 similar reputable agency approved by the department. 5 (c) A member of the Workers' Compensation Appeal Board shall 6 conform to the following code of ethics: 7 (1) Avoid impropriety and the appearance of impropriety in 8 all activities. 9 (2) Perform duties impartially and diligently. 10 (3) Avoid ex parte communications in any contested, on-the- 11 record matter pending before the department. 12 (4) Abstain from expressing publicly, except in 13 administrative disposition or adjudication, personal views on 14 the merits of an adjudication pending before the department and 15 require similar abstention on the part of department personnel 16 subject to the member's direction and control. 17 (5) Require staff and personnel subject to the member's 18 direction and control to observe the standards of fidelity and 19 diligence that apply to a member. 20 (6) Refer to the Secretary of Labor and Industry 21 disciplinary measures against department personnel subject to 22 the member's direction and control for unethical conduct. 23 (7) Disqualify himself from proceedings in which 24 impartiality may be reasonably questioned. 25 (8) Keep informed about the personal and fiduciary interests 26 of himself and his immediate family. 27 (9) Regulate outside activities to minimize the risk of 28 conflict with official duties. A member may speak, write or 29 lecture, and reimbursed expenses, honoraria, royalties or other 30 money received in connection therewith shall be disclosed 20060H2738B4637 - 8 -
1 annually. A disclosure statement shall be filed with the 2 Secretary of Labor and Industry and the State Ethics Commission 3 and shall be open to inspection by the public during the normal 4 business hours of the department and the commission during the 5 tenure of the member. 6 (10) Refrain from direct or indirect solicitation of funds 7 for political, educational, religious, charitable, fraternal or 8 civic purposes: Provided, however, That a member may be an 9 officer, a director or a trustee of such organizations. 10 (11) Refrain from financial or business dealings which would 11 tend to reflect adversely on impartiality. A member may hold and 12 manage investments which are not incompatible with the duties of 13 office. 14 (12) Uphold the integrity and independence of the workers' 15 compensation system. 16 (d) Individuals who are currently serving as members of the 17 Workers' Compensation Appeal Board shall continue to serve, 18 subject to the provisions of subsection (c). 19 (e) The secretary shall ensure that there are at least two 20 opinion writers assigned to each member of the board. Opinion 21 writers employed by or on behalf of the board whose duties 22 involve, in whole or in part, the writing or drafting of 23 proposed opinions, decisions or orders for the board or any 24 member of the board shall be required to annually attend and 25 participate in a minimum of eight (8) hours of continuing legal 26 education in the field of workers' compensation practice and 27 procedure in courses approved by the Pennsylvania Supreme Court 28 Continuing Legal Education Board. 29 Section 5. Section 414 of the act, amended February 8, 1972 30 (P.L.25, No.12), is amended to read: 20060H2738B4637 - 9 -
1 Section 414. Whenever a claim petition or other petition is 2 presented to the department, the department shall, by general 3 rules or special order, assign it to a [referee] workers' 4 compensation judge for hearing. When assigning petitions, 5 including those for resolution hearings, the department shall 6 not assign to a particular workers' compensation judge more than 7 seventy-five per centum of the petitions from a particular 8 county. 9 The department shall serve upon each adverse party a copy of 10 the petition, together with a notice that such petition will be 11 heard by the [referee] WORKERS' COMPENSATION JUDGE to whom it <-- 12 has been assigned (giving his name and address) as the case may 13 be, and, shall mail the original petition to such [referee] <-- 14 WORKERS' COMPENSATION JUDGE, together with copies of the notices <-- 15 served upon the adverse parties. 16 Section 6. Section 426 of the act, amended February 8, 1972 <-- 17 (P.L.25, No.12) and repealed in part April 28, 1978 (P.L.202, 18 No.53), is amended to read: 19 Section 426. The board, upon petition of any party and upon 20 cause shown, may grant a rehearing of any petition upon which 21 the board has made an award or disallowance of compensation or 22 other order or ruling, or upon which the board has sustained or 23 reversed any action of a referee; but such rehearing shall not 24 be granted more than eighteen months after the board has made 25 such award, disallowance, or other order or ruling, or has 26 sustained or reversed any action of the referee: Provided, 27 however, That nothing contained in this section shall limit or 28 restrict the right of the board, or a referee to review, modify, 29 set aside, reinstate, suspend, or terminate, an original or 30 supplemental agreement, or an award in accordance with the 20060H2738B4637 - 10 -
1 provisions of section four hundred thirteen of this article. A 2 rehearing shall be conducted by the board en banc. 3 Section 7 6. Section 442 of the act, amended June 24, 1996 <-- 4 (P.L.350, No.57), is amended to read: 5 Section 442. All counsel fees, agreed upon by claimant and 6 his attorneys, for services performed in matters before any 7 workers' compensation judge or the board, whether or not allowed 8 as part of a judgment, shall be approved by the workers' 9 compensation judge or board as the case may be, providing the 10 counsel fees do not exceed twenty per centum of the amount 11 awarded. [The official conducting any hearing, upon cause shown, 12 may allow a reasonable attorney fee exceeding twenty per centum 13 of the amount awarded at the discretion of the hearing 14 official.] 15 In cases where the efforts of claimant's counsel produce a 16 result favorable to the claimant but where no immediate award of 17 compensation is made such as in cases of termination or 18 suspension the hearing official shall allow or award reasonable 19 counsel fees, as agreed upon by claimant and his attorneys, 20 without regard to any per centum. In the case of compromise and 21 release settlement agreements, where there is no underlying <-- 22 litigation, no counsel fees shall exceed twenty per centum of 23 the workers' compensation settlement amount. 24 Section 8. Section 1401 of the act, added June 24, 1996 <-- 25 (P.L.350, No.57), is amended to read: 26 Section 1401. (a) There is created within the department an 27 office to be known as the Office of Adjudication. 28 (b) The secretary shall appoint as many qualified and 29 competent workers' compensation judges as necessary to conduct 30 matters under this act. 20060H2738B4637 - 11 -
1 (c) The secretary shall set normal working hours for 2 workers' compensation judges. During those hours, workers' 3 compensation judges shall devote full time to their official 4 duties and shall perform no work inconsistent with their duties 5 as workers' compensation judges. Workers' compensation judges 6 shall not engage in any unapproved activities during normal 7 working hours. 8 (d) Workers' compensation judges shall be afforded 9 employment security as provided by the act of August 5, 1941 10 (P.L.752, No.286), known as the "Civil Service Act." 11 (e) Compensation for workers' compensation judges shall be 12 established by the Executive Board. Compensation for workers' 13 compensation judges shall be established by the executive board 14 at a pay range not less than the pay range for administrative 15 law judges appointed under section 212 of the act of April 12, 16 1951 (P.L.90, No.21), known as the "Liquor Code," and 66 Pa.C.S. 17 § 304 (relating to administrative law judges). 18 (f) The secretary shall develop and require all workers' 19 compensation judges to complete a course of training and 20 instruction in the duties of their respective offices and pass 21 an examination prior to assuming office. The course of training 22 and instruction shall not exceed four weeks in duration and 23 shall consist of a minimum of forty hours of class instruction 24 in medicine and law. 25 (g) The secretary shall develop a continuing professional 26 development plan for workers' compensation judges which shall 27 require the annual completion of twenty hours of approved 28 continuing professional development courses. 29 (h) The secretary may adopt additional rules to establish 30 standards and procedures for the evaluation, training, promotion 20060H2738B4637 - 12 -
1 and discipline of workers' compensation judges. 2 Section 9 7. The act is amended by adding an article to <-- 3 read: 4 ARTICLE XVI 5 UNINSURED EMPLOYERS GUARANTY FUND 6 Section 1601. Definitions. 7 The following words and phrases when used in this article 8 shall have the meanings given to them in this section unless the 9 context clearly indicates otherwise: 10 "Compensation." Benefits paid pursuant to sections 306 and 11 307. 12 "Employer." Any employer as defined in section 103. The term 13 does not include a person that qualifies as a self-insured 14 employer under section 305. 15 "Fund." The Uninsured Employers Guaranty Fund established in 16 section 1602. The fund shall not be considered an insurer and 17 shall not be subject to penalties, unreasonable contest fees or 18 any reporting and liability requirements under section 440. 19 "Policyholder." A holder of a workers' compensation policy 20 issued by the State Workers' Insurance Fund, or an insurer that 21 is a domestic, foreign or alien mutual association or stock 22 company writing workers' compensation insurance on risks which 23 would be covered by this act. 24 "Secretary." The Secretary of Labor and Industry of the 25 Commonwealth. 26 Section 1602. Fund. 27 (a) Establishment.-- 28 (1) There is established a special fund to be known as 29 the Uninsured Employers Guaranty Fund. 30 (2) The fund shall be maintained as a separate fund in 20060H2738B4637 - 13 -
1 the State Treasury subject to the procedures and provisions 2 set forth in this article. 3 (b) Source.--The sources of the fund are: 4 (1) Assessments provided for under section 1607. 5 (2) Reimbursements or restitution. 6 (3) Interest on money in the fund. 7 (c) Use.--The administrator shall establish and maintain the 8 fund for the exclusive purpose of paying to any claimant or his 9 dependents workers' compensation benefits due and payable under 10 this act and the Occupational Disease Act and any costs 11 specifically associated therewith where the employer liable for 12 the payments failed to carry workers' compensation insurance 13 coverage at the time the injuries took place. 14 (d) Administration.--The secretary shall be the 15 administrator of the fund and shall have the power to collect 16 money for and disburse money from the fund. 17 (e) Status.--The fund shall have all of the same rights, 18 duties, responsibilities and obligations as an insurer. 19 Section 1603. Claims. 20 (a) Scope.--This section shall apply to claims for an injury 21 or a death which occurs on or after the effective date of this 22 article. 23 (b) Time.--An injured worker shall notify the fund within 45 24 days after the worker knew that the employer was uninsured or 25 received confirmation of noninsurance from the rating bureau or 26 any other agency charged with providing notice of a claim 27 against the fund. The department shall have adequate time to 28 monitor the claim and shall determine the obligations of the 29 employer. No compensation shall be paid from this fund until 30 notice is given and the department determines that the employer 20060H2738B4637 - 14 -
1 failed to voluntarily accept and pay the claim or subsequently 2 defaulted on payments of compensation. No compensation shall be 3 due until notice is given. 4 (c) Process.--After notice, the fund shall process the claim 5 in accordance with the provisions of this act. 6 (d) Petitions.--No claim petition may be filed against the 7 fund until at least 21 days after notice of the claim is made to 8 the fund. 9 Section 1604. Claim petition. 10 If a claim for compensation is filed under this article and 11 the claim is not voluntarily accepted as compensable, the 12 employee may file a claim petition naming both the employer and 13 the fund as defendants. A responsive pleading filed by the fund 14 to the claim petition shall serve as an answer on behalf of the 15 uninsured employer. Failure of the uninsured employer to answer 16 a claim petition shall not serve as an admission or otherwise 17 bind the fund under section 416. 18 Section 1605. Department. 19 (a) Insurance inquiry.--Within ten days of notice of a 20 claim, the fund shall demand from the employer proof of 21 applicable insurance coverage. Within 14 days from the date of 22 the fund's request, the employer must provide proof of 23 insurance. If the employer does not provide proof, there shall 24 be rebuttable presumption of uninsurance and the fund shall 25 serve as the uninsured employer's insurer for purposes of the 26 claim in question. 27 (b) Reimbursement.--The department shall, on behalf of the 28 fund, exhaust all remedies at law against the uninsured employer 29 in order to collect the amount of a voluntary payment or award, 30 including voluntary payment or award itself and reimbursement of 20060H2738B4637 - 15 -
1 costs, interest, penalties, fees under section 440 and costs of 2 the fund's attorney, which have been paid by the fund. The fund 3 shall also be reimbursed for costs or attorney fees which are 4 incurred in seeking reimbursement under this subsection. The 5 department is authorized to investigate violations of section 6 305 for prosecution of the uninsured employer pursuant to 7 section 305(b) and shall pursue such prosecutions through 8 coordination with the appropriate prosecuting authority. Any 9 restitution obtained shall be paid to the fund. 10 (c) Bankruptcy.--The department has the right to appear and 11 represent the fund as a creditor in a bankruptcy proceeding 12 involving the uninsured employer. 13 (d) Liens.--If payments of any nature have been made by the 14 fund on behalf of an uninsured employer, the fund shall file a 15 certified proof of payment with the prothonotary of a court of 16 common pleas and the prothonotary shall enter the entire balance 17 as a judgment against the employer. The judgment shall be a 18 statutory lien against property of the employer, and execution 19 may issue on it. The fund has the right to update the amount of 20 the lien as payments are made. 21 Section 1606. Other remedies. 22 Nothing contained in this article shall serve to abrogate the 23 provisions of section 305(d) allowing the claimant or dependents 24 to bring a direct suit for damages at law as provided by Article 25 II. The fund shall be entitled to assert rights to subrogation 26 under section 319 for recovery made from the employer or any 27 other third party. 28 Section 1607. Assessments. 29 For the purpose of establishing and maintaining the fund, on 30 the effective date of this section, and on or before January 31 20060H2738B4637 - 16 -
1 of each year thereafter, the department shall calculate the 2 amount necessary to maintain the fund and shall assess insurers 3 and self-insured employers as, in the discretion of the 4 department, is necessary to provide an amount sufficient to pay 5 outstanding and anticipated claims in a timely manner and meet 6 the costs of the department to administer the fund. Assessments 7 to maintain the fund shall be imposed, collected and remitted in 8 the same manner as administration fund assessments under section 9 446, and the regulations promulgated thereunder. 10 Section 1608. Regulations. 11 The department may promulgate regulations for the 12 administration and enforcement of this article. 13 Section 10 8. Repeals are as follows: <-- 14 (1) The General Assembly declares that the repeal under 15 paragraph 2 is necessary to effectuate the addition of 16 section 401.2 of the act. 17 (2) Section 441 of the act of April 9, 1929 (P.L.177, 18 No.175), known as The Administrative Code of 1929, is 19 repealed. 20 Section 11 9. This act shall take effect as follows: <-- 21 (1) The amendment of section 401.1 of the act shall take 22 effect immediately. 23 (2) This section shall take effect immediately. 24 (3) The remainder of this act shall take effect in 60 25 days. D10L77VDL/20060H2738B4637 - 17 -