PRINTER'S NO. 2107
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1600
Session of
2017
INTRODUCED BY JOZWIAK, KNOWLES, HEFFLEY, CAUSER, SCHLOSSBERG,
MURT, QUIGLEY, BIZZARRO, ZIMMERMAN, READSHAW, RYAN,
A. HARRIS, BOBACK, WARD, PICKETT, SIMMONS, GOODMAN, KAUFFMAN,
DEASY, SAINATO, MARSICO, WATSON, GILLEN, PEIFER, GABLER,
FREEMAN, PHILLIPS-HILL, FARRY AND GODSHALL, JUNE 21, 2017
REFERRED TO COMMITTEE ON FINANCE, JUNE 21, 2017
AN ACT
Amending Title 35 (Health and Safety) of the Pennsylvania
Consolidated Statutes, in volunteer firefighters, further
providing for employment sanctions; and providing for a
volunteer emergency responders employer tax credit.
The General Assembly finds and declares as follows:
(a) Findings.--
(1) More than 85% of all emergency service personnel in
this Commonwealth are volunteers.
(2) Volunteer emergency service personnel have saved
many lives and millions of tax dollars for the citizens of
this Commonwealth.
(3) During the past decade, the ranks of volunteer
emergency service personnel have decreased by more than 10%.
(4) The decrease in manpower within this Commonwealth's
volunteer emergency services, coupled with increasing
conflicts with the volunteer's professional duties, has
resulted in:
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(i) Manpower response shortages to emergency calls.
(ii) A decrease in the number of volunteers
permitted and able to participate in necessary, and
sometimes required, emergency service training.
(iii) A greater risk to those who are permitted to
respond to an emergency call.
(b) Declaration.--The General Assembly declares as follows:
(1) It is vital to provide new ways to attract and
retain volunteer emergency service personnel without placing
an undue burden on taxpayers or businesses throughout this
Commonwealth.
(2) It is in the public interest for the General
Assembly to:
(i) Encourage private employers to permit an
employee-volunteer to leave work in response to an
emergency call in the employee's capacity as a member of
a volunteer emergency service organization, with the
option of pay, and no loss of time or efficiency rating,
by providing a tax credit to the employer for the period
during which the employee-volunteer is absent from work
because of the employee-volunteer's response to an
emergency call, provided that the employee is in
compliance with a prearranged, preapproved release policy
of the employer.
(ii) Encourage private employers to permit an
employee-volunteer to take a paid leave of absence at the
request of the chief executive officer of the volunteer
emergency service organization to which the employee-
volunteer belongs in order to participate in emergency
service training by providing a tax credit to the
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employer for a period of no more than five days per year
during which the employee-volunteer is participating in
emergency service training, provided the employee is in
compliance with a prearranged, preapproved release policy
of the employer.
(iii) Authorize the Commonwealth and its political
subdivisions to permit an employee-volunteer to leave
work in response to an emergency call, with or without
pay, and no loss of time or efficiency rating.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Subchapter C of Chapter 74 of Title 35 of the
Pennsylvania Consolidated Statutes is repealed:
[SUBCHAPTER C
EMPLOYMENT SANCTIONS
Sec.
7421. Scope of subchapter.
7422. Definitions.
7423. Prohibition on termination and discipline.
7424. Prohibition on discrimination.
7425. Lost time.
7426. Statements.
7427. Violations.
§ 7421. Scope of subchapter.
This subchapter relates to employment sanctions.
§ 7422. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Discipline." The taking of an action against an employee
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which adversely affects his regular pay to an extent greater
than permitted by section 7425 (relating to lost time), his job
status, his opportunity for promotion or his right to any
benefit granted by the employer to other similarly situated
employees.
"Discriminate." To discharge or to discipline in a manner
inconsistent with the employer's treatment of other similarly
situated employees who are injured in the course of their
employment or related activities.
"Employer." An individual, partnership, association,
corporation, business trust or a person or group of persons
acting directly or indirectly in the interest of an employer in
relation to any employee.
"Line of duty." Going to, coming from or during fire
prevention and safety activities which includes fire prevention,
first aid, rescue and salvage, ambulance service, fire police
work, assistance at accidents, control of crowds both on the
fire grounds and at occasions of public or general assembly,
animal rescue, abatement of conditions due to storm, flood or
general peril, abatement or removal of hazards to safety and
other activities as are commonly undertaken by fire companies,
ambulance services or rescue squads or their affiliated
organizations.
§ 7423. Prohibition on termination and discipline.
No employer shall terminate or discipline an employee who is
a volunteer fireman, a volunteer member of the fire police or a
volunteer member of an ambulance service or rescue squad and, in
the line of duty, has responded to a call prior to the time he
was due to report for work resulting in a loss of time from his
employment.
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§ 7424. Prohibition on discrimination.
No employer shall discriminate against an employee because
the employee has been injured in the line of duty as a volunteer
fireman, a volunteer member of the fire police or a volunteer
member of an ambulance service or rescue squad, nor shall an
employer discriminate against an employee injured in the line of
duty as a volunteer fireman, a volunteer member of the fire
police or a volunteer member of an ambulance service or rescue
squad who subsequently returns to work after receiving workers'
compensation benefits under the act of June 2, 1915 (P.L.736,
No.338), known as the Workers' Compensation Act.
§ 7425. Lost time.
Time lost from employment as provided in section 7423
(relating to prohibition on termination and discipline) may be
charged to the regular pay of the employee.
§ 7426. Statements.
An employee losing time as provided in section 7423 (relating
to prohibition on termination and discipline) shall supply his
employer with a statement from the chief executive officer of
his volunteer fire company, ambulance service or rescue squad or
its affiliated organization stating that he responded to a call
and the time of the call.
§ 7427. Violations.
(a) Employers.--An employer who willfully and knowingly
violates this subchapter shall be required to revoke a
disciplinary action and any penalty attached thereto or to
reinstate such employee to his former position and shall be
required to pay the employee all lost wages and benefits for the
period between termination and reinstatement and reasonable
attorney fees incurred in an action to recover lost wages and
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benefits.
(b) Statute of limitations.--An action to enforce this
subchapter shall be commenced within two years of the date of
violation, and the action shall be commenced in the court of
common pleas of the county in which the employer is located.]
Section 2. Title 35 is amended by adding a chapter to read:
CHAPTER 74A
VOLUNTEER EMERGENCY RESPONDERS EMPLOYER TAX CREDIT
Subchapter
A. Preliminary Provisions
B. Private Sector Incentives
C. Public Sector Incentives
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
74A01. Scope of chapter.
74A02. Definitions.
74A03. Employment discrimination prohibited.
§ 74A01. Scope of chapter.
This chapter relates to volunteer emergency responders
employer tax credit.
§ 74A02. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commonwealth." A department, agency, board, commission or
instrumentality of State government.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Discipline." To take action against an employee which
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adversely affects the employee's regular pay to an extent not
provided for in this chapter, the employee's job status or
opportunity for promotion or the employee's right to any benefit
granted by the employer to other similarly situated employees.
"Discriminate." To discharge or to discipline in a manner
inconsistent with the employer's treatment of other similarly
situated employees who are injured in the course of employment
or related activities.
"Employee-volunteer." A member of a volunteer emergency
service organization who is in the employ of the Commonwealth, a
political subdivision or a private employer.
"Employer." An individual, partnership, association,
corporation, business trust or a person or group of persons who
controls and directs a worker under an express or implied
contract of hire and who pays the worker's salary or wages. The
term includes the Commonwealth and its political subdivisions.
"Line of duty." Going to, coming from or during fire
prevention and safety activities, which include fire prevention,
first aid, rescue and salvage, ambulance service, fire police
work, assistance at accidents, control of crowds both on the
fire grounds and at occasions of public or general assembly,
animal rescue, abatement of conditions due to storm, flood or
general peril, abatement or removal of hazards to safety and
other activities as are commonly undertaken by fire companies,
ambulance services or rescue squads or affiliated organizations.
"Pass-through entity." A partnership as defined in section
301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the
Tax Reform Code of 1971, or a Pennsylvania S corporation as
defined in section 301(n.1) of the Tax Reform Code of 1971.
"Political subdivision." A county, city, borough,
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incorporated town, township, home rule municipality, school
district or municipal authority.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV, VI, VII, VIII, IX or XV of the Tax Reform
Code of 1971. The term does not include a tax withheld by an
employer from an employee under Article III of the Tax Reform
Code of 1971.
"Tax credit." The volunteer responders employer tax credit
established by this article.
"Taxpayer." An entity that is subject to a tax imposed under
Article III, IV, VI, VII, VIII, IX or XV of the Tax Reform Code
of 1971. The term does not include a tax withheld by an employer
from an employee under Article III of the Tax Reform Code of
1971.
"Volunteer ambulance service." A nonprofit chartered
corporation, association or organization located in this
Commonwealth, which is licensed by the Department of Health, is
not associated or affiliated with a hospital and which is
regularly engaged in the provision of emergency medical
services, including basic life support or advanced life support
services and advanced life support squads as defined in 28 Pa.
Code § 1021.2 (relating to definitions). The term does not
include a corporation, association or organization that is
primarily engaged in the operation of invalid coaches which are
intended for the routine transport of persons who are
convalescent or otherwise nonambulatory and do not ordinarily
require emergency medical treatment while in transit.
"Volunteer emergency service organization." An organization
which is a volunteer fire company, volunteer ambulance service,
volunteer rescue company or volunteer hazardous material
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response team.
"Volunteer fire company." A nonprofit chartered corporation,
association or organization located in this Commonwealth which
provides fire protection or rescue services and which may offer
other voluntary emergency services within this Commonwealth.
Voluntary emergency services provided by a volunteer fire
company may include voluntary ambulance and voluntary rescue
services.
"Volunteer hazardous material response team." A nonprofit
chartered corporation, association or organization located in
this Commonwealth whose members are certified and organized to
provide emergency response services to mitigate actual or
potential immediate threats to public health and the environment
in response to the release or threat of a release of a hazardous
material. The term includes teams certified to perform
stabilization actions needed to remove threats to public health
and the environment from hazardous material releases.
"Volunteer rescue company." A nonprofit chartered
corporation, association or organization located in this
Commonwealth which provides rescue service in this Commonwealth.
§ 74A03. Employment discrimination prohibited.
(a) General rule.--It is unlawful for an employer to refuse
to hire or employ an individual because the individual is a
member of a volunteer emergency service organization.
(b) Prohibition on discipline and discrimination for time
lost.--
(1) It is unlawful for an employer to discipline or
discriminate or to discharge from employment an employee-
volunteer with respect to base salary, hire, tenure, terms,
conditions or privileges of employment for the reason that
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the employee-volunteer responded to an emergency call prior
to the time the employee-volunteer was due to report to work,
resulting in loss of time from employment, if the employee-
volunteer satisfies the requirements of paragraph (2).
(2) An employee-volunteer who loses time for reasons
specified in this section shall immediately upon arriving at
work inform his or her employer or immediate supervisor that
the employee-volunteer has been called to respond to an
emergency. The employee-volunteer losing time as provided for
under this chapter shall supply his or her employer with a
statement from the chief executive officer of his or her
volunteer emergency service organization stating that he or
she responded to a call and the time of the call.
(3) If an employee-volunteer is employed by a private
employer, any time lost from employment may be charged
against the employee-volunteer's regular salary or wages or
the private employer may apply for the tax credits provided
in section 74A11(a) (relating to volunteer responders
employer tax credit).
(4) If an employee-volunteer is employed by the
Commonwealth or a political subdivision, payment of salary or
wages for time lost from employment shall be based on a
policy adopted by the Commonwealth or the political
subdivision.
(c) Discrimination because of injury.--It is unlawful for an
employer to discipline or to discharge from employment or to
otherwise discriminate against an employee-volunteer with
respect to compensation, hire, tenure, terms, conditions or
privilege of employment because the employee-volunteer has been
injured in the line of duty and has subsequently returned to
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work, regardless of whether the employee-volunteer received any
workers' compensation benefits under the act of June 2, 1915
(P.L.736, No.338), known as the Workers' Compensation Act.
(d) Legal action.--An employer who willfully and knowingly
violates the provisions of this chapter shall:
(1) Revoke disciplinary action or penalty imposed
against an employee-volunteer or reinstate the employee-
volunteer to his or her former position.
(2) Pay the employee-volunteer all lost wages and
benefits for the period between termination and reinstatement
and reasonable attorney fees which are incurred in an action
to recover lost wages and benefits.
(e) Period of limitations.--An action to enforce the
provisions of this chapter shall be commenced within a period of
two years from the date of violation, and the action shall be
commenced in the court of common pleas of the county in which
the employer is located.
SUBCHAPTER B
PRIVATE SECTOR INCENTIVES
Sec.
74A11. Volunteer responders employer tax credit.
74A12. Application for tax credit.
74A13. Review and approval.
74A14. Limitations.
74A15. Shareholder, owner or member pass-through.
74A16. Guidelines.
74A17. Applicability.
74A18. Reports.
§ 74A11. Volunteer responders employer tax credit.
(a) Eligibility.--A taxpayer shall be eligible to receive a
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tax credit against qualified tax liability if the taxpayer
permits an employee-volunteer to take a paid leave of absence
for any of the following:
(1) In response to an emergency call or to respond to an
emergency call prior to the start of work.
(2) At the written request of the chief executive
officer of the volunteer emergency service organization in
order to participate as a student or instructor in training
appropriate to the volunteer emergency services organization.
(b) Official notice required.--
(1) In order to qualify for the paid leave of absence as
provided for in subsection (a)(1), the employee-volunteer
shall provide notice that the employee-volunteer has been
called to respond to an emergency or provide notice that he
or she responded to a call and the time of the call and
request that a leave of absence be granted.
(2) In order to qualify for the paid leave of absence as
provided for in subsection (a)(2), the employee-volunteer
shall provide the employer, within 14 days of the scheduled
training, a signed statement from the chief executive officer
of the volunteer emergency service organization that includes
the reason and amount of time needed for the employee-
volunteer to complete the training along with a request that
a leave of absence be granted.
§ 74A12. Application for tax credit.
A taxpayer may apply to the department for a tax credit
certificate under this section. The application must be on a
form required by the department and shall include all of the
following information:
(1) The name and address of the taxpayer.
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(2) Documentation of the following for each eligible
employee-volunteer in which a tax credit is being claimed:
(i) Name and address of the employee-volunteer.
(ii) Total wages paid by the taxpayer to the
employee-volunteer.
(iii) Wages paid by the taxpayer to the employee-
volunteer paid under section 74A11(a) (relating to
volunteer responders employer tax credit).
(iv) Documentation as required by section 74A11(a)
(2) or (b).
(3) Any other information required by the department.
§ 74A13. Review and approval.
(a) Duties.--The department shall do all of the following:
(1) Review and approve applications according to the
order applications are received and the availability of tax
credits.
(2) Notify the applicant within 30 days of receipt of
the application of its determination.
(b) Issuance.--If an application is approved, the department
shall issue the taxpayer a tax credit certificate within 15 days
of the approval.
§ 74A14. Limitations.
(a) Amount.--A tax credit certificate issued under this
section may not exceed 50% of a taxpayer's qualified tax
liability.
(b) Prohibition.--In granting tax credits under this
chapter, the department may not do any of the following:
(1) Grant more than $5,000,000 in tax credit
certificates in any fiscal year.
(2) Grant more than $10,000 in tax credit certificates
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to a single taxpayer in any fiscal year.
(c) Unused credits.--A taxpayer may not be entitled to carry
forward, carry back or obtain a refund of the unused tax credit.
(d) Sale or reassignment.--A tax credit may not be sold or
reassigned.
§ 74A15. Shareholder, owner or member pass-through.
(a) Shareholder entitlement.--If a Pennsylvania S
corporation does not have an eligible tax liability against
which the tax credit may be applied, a shareholder of the
Pennsylvania S corporation shall be entitled to a tax credit
equal to the tax credit determined for the Pennsylvania S
corporation for the taxable year multiplied by the percentage of
the Pennsylvania S corporation's distributive income to which
the shareholder is entitled.
(b) Pass-through entity entitlement.--If a pass-through
entity other than a Pennsylvania S corporation does not have tax
liability against which the tax credit may be applied, an owner
or member of the pass-through entity shall be entitled to a tax
credit equal to the tax credit determined for the pass-through
entity for the taxable year multiplied by the percentage of the
pass-through entity's distributive income to which the owner or
member is entitled.
(c) Additional credit.--
(1) Except as provided under paragraph (2), the tax
credit provided under subsection (a) or (b) shall be in
addition to any other tax credit to which a shareholder,
owner or member of a pass-through entity is otherwise
entitled under this chapter.
(2) A pass-through entity and a shareholder, owner or
member of a pass-through entity may not claim a tax credit
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under this chapter for the same employee-volunteer.
§ 74A16. Guidelines.
The department, in conjunction with the Department of
Revenue, shall develop written guidelines necessary for the
implementation and administration of this chapter. The
guidelines shall be posted on the department's publicly
accessible Internet website.
§ 74A17. Applicability.
This chapter shall apply to taxable years beginning after
December 31, 2017.
§ 74A18. Reports.
No later than June 1, 2019, and each June 1 thereafter, the
department shall submit a report on the effectiveness of the tax
credits granted under this chapter. The report shall include the
names of taxpayers who were issued tax credits as of the date of
the report. The report may include recommendations for changes
in the calculation or administration of the tax credits and
other information as the department deems appropriate. The
report shall be submitted to all of the following:
(1) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(2) The chairperson and minority chairperson of the
Finance Committee of the Senate.
(3) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(4) The chairperson and the minority chairperson of the
Finance Committee of the House of Representatives.
SUBCHAPTER C
PUBLIC SECTOR INCENTIVES
Sec.
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74A21. Emergency response leave of absence.
§ 74A21. Emergency response leave of absence.
(a) Optional paid leave.--An officer or employee of the
Commonwealth or a political subdivision who is an employee-
volunteer may be entitled to leave work in response to an
emergency call without loss of pay, time or efficiency, subject
to the terms and conditions of a policy adopted by the
Commonwealth or political subdivision.
(b) Official notice required.--In order to qualify for the
paid leave as provided for in subsection (a), the employee-
volunteer shall:
(1) Inform his or her employer or immediate supervisor
that the employee-volunteer has been called to respond to an
emergency and request that a leave of absence be granted.
(2) Supply his or her employer with a statement from the
chief executive officer of the emergency service organization
stating that he or she responded to a call and the time of
the call.
Section 3. This act shall take effect in 60 days.
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