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07/25/2024 03:25 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20130&cosponId=13519
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: October 16, 2013 09:38 AM
From: Representative Mark K. Keller
To: All House members
Subject: Lesgislation to Amend Workers' Compensation Act
 
Please find attached a copy of legislation to amend the Workers Compensation Act (Act 338 of 1915) that I plan to introduce in the near future to address an issue brought to my attention by one of my municipalities. It is first important to note that Section 602 of the Workers Compensation Act requires that a municipality which receives emergency services from a volunteer emergency service provider based in another municipality (a.k.a., “host municipality”) reimburse that host municipality for a share of its workers’ compensation costs associated with that volunteer emergency service provider (in a proportional amount defined by population served). The host municipality receiving reimbursement from the other municipalities for its workers’ compensation costs pays the premium for the services rendered for itself as well as the adjoining municipalities. Because certain host municipalities receive discounts because of the magnitude of their premium (discounts because their liability insurance for coverage of buildings is significant, and for other reasons) it has occurred to some of the municipalities which receive volunteer services to ask that such a discount received by a host municipality be shared with them as well, even though they make no contribution toward the liability insurance that covers the buildings in the host municipality. While one would think that reason should prevail, unfortunately there have been disputes between municipalities on this subject.
My legislation amends Section 602 to make clear that insurance premium discounts received by a host municipality, which are not related to workers compensation insurance policy, are not required to be shared with adjoining municipalities receiving volunteer emergency services. I believe this is good public policy, and makes “common sense”.

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Introduced as HB1828