1Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as
2reenacted and amended, "An act defining the liability of an
3employer to pay damages for injuries received by an employe
4in the course of employment; establishing an elective
5schedule of compensation; providing procedure for the
6determination of liability and compensation thereunder; and
7prescribing penalties," in liability and compensation,
8further providing for injuries outside this Commonwealth; in
9the Uninsured Employers Guaranty Fund, further providing for
10definitions, for fund, for claims, for claim petition, for
11administration and for assessments and transfers; and
12providing for uninsured employer obligations and for
13administrative penalties and stop-work orders.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1. Section 305.2(c) of the act of June 2, 1915
17(P.L.736, No.338), known as the Workers' Compensation Act,
18reenacted and amended June 21, 1939 (P.L.520, No.281) and added
19December 5, 1974 (P.L.782, No.263), is amended and the section
20is amended by adding a subsection to read:

21Section 305.2. * * *

22(c) If an employe is entitled to the benefits of this act by
23reason of an injury sustained in this State in employment by an

1employer who is domiciled in another state and who has not
2secured the payment of compensation as required by this act, the
3[employer or his carrier may file with the director a
4certificate, issued by] department may verify with the
5commission or agency of such other state having jurisdiction
6over [workmen's] workers' compensation claims[, certifying] that
7such employer has secured the payment of compensation under the
8[workmen's] workers' compensation law of such other state and
9that with respect to said injury such employe is entitled to the
10benefits provided under such law.

11[In such event:

12(1) The filing of such certificate shall constitute an
13appointment by such employer or his carrier of the Secretary of
14Labor and Industry as his agent for acceptance of the service of
15process in any proceeding brought by such employe or his
16dependents to enforce his or their rights under this act on
17account of such injury;

18(2) The secretary shall send to such employer or carrier, by
19registered or certified mail to the address shown on such
20certificate, a true copy of any notice of claim or other process
21served on the secretary by the employe or his dependents in any
22proceeding brought to enforce his or their rights under this
23act;]

24(3) The following shall apply:

25(i) If such employer is a qualified self-insurer under the
26[workmen's] workers' compensation law of such other state, such
27employer shall[, upon submission of evidence, satisfactory to
28the director, of his ability to meet his liability to such
29employe under this act,] be deemed, for the purposes of such 
30employe, to be a qualified self-insurer under this act[;].

1(ii) If such employer's liability under the workmen's
2compensation law of such other state is insured, such employer's
3carrier, as to such employe or his dependents only, shall be
4deemed to be an insurer authorized to write insurance under and
5be subject to this act: Provided, however, That unless its
6contract with said employer requires it to pay an amount
7equivalent to the compensation benefits provided by this act,
8its liability for income benefits or medical and related
9benefits shall not exceed the amounts of such benefits for which
10such insurer would have been liable under the workmen's
11compensation law of such other state[;].

12(4) If the total amount for which such employer's insurance
13is liable under clause (3) above is less than the total of the
14compensation benefits to which such employe is entitled under
15this act, the [secretary] department may, if [he deems it]
16necessary, require the employer to file security[, satisfactory
17to the secretary, to secure] to guarantee the payment of
18benefits due such employe or his dependents under this act[;
19and].

20(5) Upon compliance with the preceding requirements of this
21subsection (c), such employer, as to such employe only, shall be
22deemed to have secured the payment of compensation under this
23act[.], and shall not be an uninsured employer for purposes of 
24Article XVI.

<-25(c.1) If an employe alleges an injury incurred with an
26employer that is domiciled in another state and that has not
27secured the payment of compensation as required by this act,
28such employe shall submit to the Uninsured Employers Guaranty
29Fund and to any workers' compensation judge hearing a petition
30against the fund, a decision, notice or ruling from such other

1state or its licensees that the employe has sought and is not
2entitled to benefits in such other state. No compensation shall
3be payable from the Uninsured Employers Guaranty Fund until the
4employe submits such decision, notice or ruling.

<-5(c.1) If an employe alleges an injury that is incurred with
6an employer which is domiciled in another state and which has
7not secured the payment of compensation as required by this act,
8such employe shall provide to the Uninsured Employers Guaranty
9Fund and to any worker's compensation judge hearing a petition
10against the fund, a written notice, denial or ruling from such
11other state or an insurer licensed to write insurance in that
12state as to that employer, indicating that the employe is not
13entitled to workers' compensation benefits in that state. No
14compensation shall be payable from the Uninsured Employers
15Guaranty Fund until the employe submits the notice, denial or
16ruling, however, the employe may file a notice or petition
17against the fund under Article XVI of this act prior to such
18submission.

19* * *

20Section 2. Sections 1601, 1602, 1603, 1604 and 1605 of the
21act, added November 9, 2006 (P.L.1362, No.147), are amended to
22read:

23Section 1601. Definitions.

24The following words and phrases when used in this article
25shall have the meanings given to them in this section unless the
26context clearly indicates otherwise:

27"Compensation." Benefits paid pursuant to sections 306 and
28307.

29"Employer." Any employer as defined in section 103. The term
30does not include a person that qualifies as a self-insured

1employer under section 305.

2"Fund." The Uninsured Employers Guaranty Fund established in
3section 1602. The fund shall not be considered an insurer and
4shall not be subject to penalties, unreasonable contest fees, 
5interest or any reporting and liability requirements under
6section 440.

7"Policyholder." A holder of a workers' compensation policy
8issued by the State Workers' Insurance Fund, or an insurer that
9is a domestic, foreign or alien mutual association or stock
10company writing workers' compensation insurance on risks which
11would be covered by this act.

12"Secretary." The Secretary of Labor and Industry of the
13Commonwealth.

14Section 1602. Fund.

15(a) Establishment.--

16(1) There is established a special fund to be known as
17the Uninsured Employers Guaranty Fund.

18(2) The fund shall be maintained as a separate fund in
19the State Treasury subject to the procedures and provisions
20set forth in this article.

21(b) Source.--The sources of the fund are:

22(1) Assessments provided for under section 1607.

23(2) Reimbursements or restitution.

24(3) Interest on money in the fund.

25(4) Administrative penalties provided for under section
261611.

27(c) Use.--The administrator shall establish and maintain the
28fund for the exclusive purpose of paying to any claimant or his
29dependents workers' compensation benefits due and payable under
30this act and the act of June 21, 1939 (P.L.566, No.284), known

1as The Pennsylvania Occupational Disease Act, and any costs
2specifically associated therewith where the employer liable for
3the payments failed to insure or self-insure its workers'
4compensation liability under section 305 at the time the
5injuries took place.

6(d) Administration.--The secretary shall be the
7administrator of the fund and shall have the power to collect
8money for and disburse money from the fund.

9(e) Status.--The fund shall have all of the same rights[,
10duties, responsibilities and obligations] as an insurer.

11Section 1603. Claims.

12(a) Scope.--This section shall apply to claims for an injury
13or a death which occurs on or after the effective date of this
14article.

15(b) Time.--An injured worker shall notify the fund within 45
16days after the worker [knew] has been advised by the employer or 
17another source that the employer was uninsured. The department
18shall have adequate time to monitor the claim and shall
19determine the obligations of the employer. No employee shall 
20receive compensation [shall be paid] from the fund [until notice
21is given] unless:

22(1) the employee notifies the fund within the time 
23period specified in this subsection; and

24(2) the department determines that the employer failed
25to voluntarily accept and pay the claim or subsequently
26defaulted on payments of compensation. [No compensation shall
27be due until notice is given.]

28(c) Process.--After notice, the fund shall process the claim
29in accordance with the provisions of this act.

30(d) Petitions.--

1(1) No claim petition may be filed against the fund
2until at least 21 days after notice of the claim is made to
3the fund.

4(2) A claim petition shall be filed within 180 days
5after notice of the claim is made to the fund. If the time
6requirement under this paragraph is not met, a claim petition
7shall not be allowed.

8(e) List of providers.--

9(1) The fund may establish lists of at least six
10designated health care providers that are accessible in each
11county in specialties relevant to the treatment of work
12injuries in this Commonwealth, as referenced in section
13306(f.1)(1).

14(2) If the fund establishes a list under paragraph (1),
15the fund shall be responsible only to reimburse expenses of
16medical treatments, services and accommodations rendered by
17the physicians or other health care providers that are
18designated on the list for the period set forth in section
19306(f.1)(1) from the date of the employee's notice to the
20fund under subsection (b).

21(3) On the notice under subsection (b), the fund shall:

22(i) provide access to the list of designated
23providers to the employee; and

24(ii) notify the employee of the requirements of this
25subsection.

26(4) If the employee receives medical treatments,
27services or accommodations from a health care provider that
28is not designated on the list, the fund shall be relieved of
29liability for the payment of medical treatments, services or
30accommodations rendered during the period set forth in

1section 306(f.1)(1) from the date of the employee's notice to
2the fund under subsection (b).

3Section 1604. Claim petition.

4(a) Authorization.--If a claim for compensation is filed
5under this article and the claim is not voluntarily accepted as
6compensable, the employee may file a claim petition naming both
7the employer and the fund as defendants. Failure of the
8uninsured employer to answer a claim petition shall not serve as
9an admission or otherwise bind the fund under section 416.

10(b) Amount of wages.--In a proceeding under this article,
11the fund shall not be liable for wage loss benefits unless the
12amount of wages the employee earned at the time of injury is
13established by one of the following:

14(1) A check, check stub or payroll record.

15(2) A tax return. This paragraph includes IRS form W-2
16and form 1099, and successors to those forms.

17(3) Unemployment compensation records, including form
18UC-2A.

19(4) Bank statements or records showing regular and
20recurring deposits.

21(5) Written documentation created contemporaneously with
22the payment of wages.

23(6) Testimony of the uninsured employer presented under
24oath at a hearing or deposition.

<-25(7) Testimony of the claimant, if found credible by the 
26judge, which is provided in addition to one or more of the 
27items listed in paragraphs (1), (2), (3), (4), (5) and (6).

28Section 1605. Department.

29(a) Insurance inquiry.--Within ten days of notice of a
30claim, the fund shall demand from the employer proof of

1applicable insurance coverage. Within 14 days from the date of
2the fund's request, the employer must provide proof of
3insurance. If the employer does not provide proof, there shall
4be rebuttable presumption of uninsurance.

5(b) Reimbursement.--The department shall, on behalf of the
6fund, exhaust all remedies at law against the uninsured employer
7in order to collect the amount of a voluntary payment or award,
8including voluntary payment or award itself and reimbursement of
9costs, interest, penalties, fees under section 440 and costs of
10the fund's attorney, which have been paid by the fund. The fund
11shall also be reimbursed for costs or attorney fees which are
12incurred in seeking reimbursement under this subsection. The
13department is authorized to investigate violations of section
14305 for prosecution of the uninsured employer pursuant to
15section 305(b) and shall pursue such prosecutions through
16coordination with the appropriate prosecuting authority. [Any
17restitution obtained shall be paid to the fund.] The fund shall 
18be entitled to restitution of all payments made under this 
19article as the result of any injury to an employee of an 
20uninsured employer. Restitution to the fund under section 305 
21shall not be limited to the amount specified in the award of 
22compensation and shall include the amount of any voluntary 
23payment or award and reimbursement of the fund's costs and the 
24fees of the fund's attorney.

25(c) Bankruptcy.--The department has the right to appear and
26represent the fund as a creditor in a bankruptcy proceeding
27involving the uninsured employer.

28(d) Liens.--If payments of any nature have been made by the
29fund on behalf of an uninsured employer, the fund shall file a
30certified proof of payment with the prothonotary of a court of

1common pleas, and the prothonotary shall enter the entire
2balance as a judgment against the employer. The judgment shall
3be a statutory lien against property of the employer in the
4manner set forth in section 308.1 of the act of December 5, 1936
5(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
6Compensation Law, and execution may issue on it. The fund has
7the right to update the amount of the lien as payments are made.

8Section 2.1. Section 1607 of the act is amended by adding a
9subsection to read:

10Section 1607. Assessments and transfers.

11* * *

12(c) For the purposes of further maintaining the fund, the
13sum of $4,000,000 is hereby transferred to the fund from the
14Administration Fund established under section 446.

15Section 3. The act is amended by adding sections to read:

16Section 1609. (Reserved).

17Section 1610. Uninsured employer obligations.

18Nothing in this article shall otherwise alter the uninsured
19employer's obligations under this act.

20Section 1611. Administrative penalties and stop-work orders.

21(a) Certification.--

22(1) If the department receives information indicating
23that an employer has failed to insure its obligations as
24required by this act, the department may require the employer
25to certify, on a form prescribed by the department, that the
26employer meets one of the following:

27(i) Possesses the requisite insurance. This
28subparagraph requires identification of the insurer,
29policy period and policy number.

30(ii) No longer operates a business. This

1subparagraph requires statement of the dates of operation
2and cessation of operation.

3(iii) Does not employ an individual entitled to
4compensation under this act.

5(iv) Is otherwise exempt from the requirements of
6obtaining insurance under this act. This paragraph
7requires identification of the applicable exemption.

8(2) The employer shall return the form to the department
9within 15 days of service of the form by the department.

10(i) If an employer does not return the form within
1115 days of service by the department, the department may
12assess an administrative penalty of $200 per day until
13the earlier of:

14(A) the date the employer complies; or

15(B) 30 days from service under this paragraph.

16(ii) If an employer does not comply with this
17paragraph within 45 days of service under this paragraph,
18the department may proceed with further enforcement under
19subsection (d).

20(b) Good cause.--If the department's investigation under
21section 1605 reveals good cause to believe that the employer is
22required and has failed to insure its liabilities as required by
23this act, the department may proceed with further enforcement
24under subsection (d).

25(c) Enforcement.--For the purposes of enforcing section 305
26and this article, all department employees or agents charged
27with enforcement may enter the premises or worksite of an
28employer that is subject to subsection (a)(2)(ii) or (b).

29(d) Stop-work order.--The department may issue an order
30requiring the cessation of operations of an employer that has

1failed to insure its liabilities as required by this act. The
2following apply:

3(1) The order may require compliance with conditions
4necessary to ensure that the employer insures its liabilities
5as required by this act.

6(2) The order shall take effect when served upon the
7employer by first class mail or posting at the employer's
8worksite.

9(3) The order shall remain in effect until released by
10the department or a court of competent jurisdiction.

11(4) The order shall be effective against a successor
12entity that:

13(i) has one or more of the same principals or
14officers as the employer against whom the order was
15issued; and

16(ii) is engaged in the same or equivalent trade or
17activity.

18(e) Nonexclusivity.--An order under subsection (d) is in
19addition to any penalty which may be imposed pursuant to this
20act.

21(f) Appeal.--

22(1) An order under subsection (d) is subject to 2
23Pa.C.S. Ch. 7 Subch. A (relating to judicial review of
24Commonwealth agency action).

25(2) Except as set forth in paragraph (3), an appeal of a
26penalty under subsection (a)(2)(i) or an order under
27subsection (d) shall not act as a supersedeas.

28(3) Upon application and for cause shown, the department
29may issue a supersedeas.

30(g) Noncompliance.--

1(1) Upon failure to comply with an order under
2subsection (d) and (f), the department may institute an
3action to enforce the order.

4(2) An action under this subsection may be initiated as
5follows:

6(i) In Commonwealth Court under 42 Pa.C.S. §
7761(a)(2) (relating to original jurisdiction).

8(ii) In a court of common pleas under 42 Pa.C.S. §
9931(b) (relating to original jurisdiction and venue).
10Venue for an action under this subparagraph lies in
11either:

12(A) the Twelfth Judicial District; or

13(B) the judicial district where the violation
14occurred.

15Section 4. Applicability is as follows:

16(1) The amendment or addition of section 1603(d) and (e)
17of the act shall apply to every claim in which notice under
18section 1603 of the act is provided to the fund on or after
19the effective date of this paragraph.

20(2) The following provisions shall apply retroactively
21to claims existing as of the effective date of this paragraph
22for which compensation has not been paid or awarded:

23(i) The amendment of section 305.2(c) of the act.

24(ii) The amendment of section 1601 of the act.

25(iii) The amendment of section 1603(b) of the act.

26(iv) The amendment of section 1604 of the act.

27Section 5. This act shall take effect immediately.