THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY B. BOYLE, K. BOYLE, DALEY, DePASQUALE, FABRIZIO, GIBBONS, GOODMAN, HARKINS, JOSEPHS, W. KELLER, KULA, MATZIE, McGEEHAN, MURPHY, MURT, M. O'BRIEN, PASHINSKI, READSHAW, STURLA AND TOOHIL, MARCH 3, 2011

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 3, 2011  

AN ACT

Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as

reenacted and amended, "An act defining the liability of an

employer to pay damages for injuries received by an employe

in the course of employment; establishing an elective

schedule of compensation; providing procedure for the

determination of liability and compensation thereunder; and

prescribing penalties," in Uninsured Employers Guaranty Fund,

further providing for reimbursement and for assessments.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 1605(b) and 1607 of the act of June 2,

1915 (P.L.736, No.338), known as the Workers' Compensation Act,

reenacted and amended June 21, 1939 (P.L.520, No.281) and added

November 9, 2006 (P.L.1362, No.147), are amended to read:

Section 1605.  Department.

* * *

(b)  Reimbursement.--The department shall, on behalf of the

fund, exhaust all remedies at law against the uninsured employer

in order to collect the amount of a voluntary payment or award,

including voluntary payment or award itself and reimbursement of

costs, interest, penalties, fees under section 440 and costs of

the fund's attorney, which have been paid by the fund. The fund

shall also be reimbursed for costs or attorney fees which are

incurred in seeking reimbursement under this subsection. The

department is authorized to investigate violations of section

305 for prosecution of the uninsured employer pursuant to

section 305(b) and shall pursue such prosecutions through

coordination with the appropriate prosecuting authority. [Any

restitution obtained shall be paid to the fund.] The fund shall

be entitled to restitution of all payments made under this

article as the result of any injury to an employe of an

uninsured employer. Restitution to the fund under section 305

shall not be limited to the amount specified in the award of

compensation, but may include the amount of any voluntary

payment or award, including the voluntary payment or award

itself and reimbursement of costs, interest and costs of the

fund's attorney, which have been paid by the fund.

* * *

Section 1607.  Assessments.

For the purpose of establishing and maintaining the fund, the

sum of $1,000,000 is hereby transferred from the Administration

Fund established under section 446 to the fund for operation of

the fund for the period commencing on the effective date of this

section through June 30, 2007. The department shall calculate

the amount necessary to maintain the fund and shall assess

insurers and self-insured employers as is necessary to provide

an amount sufficient to pay outstanding and anticipated claims

in the following year in a timely manner and to meet the costs

of the department to administer the fund. The fund shall be

maintained in the same manner as the Workmen's Compensation

Administration Fund under section 446 and the regulations

thereunder. In no event shall any annual assessment exceed

[0.1%] the lesser of the amount sufficient to pay outstanding

and anticipated claims in the following year in a timely manner

and to meet the costs of the department to administer the fund,

or 0.5% of the total compensation paid by all insurers or self-

insured employers during the previous calendar year. The

department has the authority to make additional assessments in

any fiscal year, provided that the total assessment for that

year may not exceed the maximum amount allowed by this section.

Section 2.  This act shall take effect immediately.