PRINTER'S NO. 294
No. 271 Session of 1975
INTRODUCED BY GLEASON, USTYNOSKI, WRIGHT, D. S. HAYES, DININNI, FISHER AND KLINGAMAN, FEBRUARY 4, 1975
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 4, 1975
AN ACT
1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled
2 "An act providing for and reorganizing the conduct of the
3 executive and administrative work of the Commonwealth by the
4 Executive Department thereof and the administrative
5 departments, boards, commissions, and officers thereof,
6 including the boards of trustees of State Normal Schools, or
7 Teachers Colleges; abolishing, creating, reorganizing or
8 authorizing the reorganization of certain administrative
9 departments, boards, and commissions; defining the powers and
10 duties of the Governor and other executive and administrative
11 officers, and of the several administrative departments,
12 boards, commissions, and officers; fixing the salaries of the
13 Governor, Lieutenant Governor, and certain other executive
14 and administrative officers; providing for the appointment of
15 certain administrative officers, and of all deputies and
16 other assistants and employes in certain departments, boards,
17 and commissions; and prescribing the manner in which the
18 number and compensation of the deputies and all other
19 assistants and employes of certain departments, boards and
20 commissions shall be determined," establishing the Bureau of
21 Risk Management in the Governor's Office and providing for
22 its powers and duties.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. The act of April 9, 1929 (P.L.177, No.175), known
26 as "The Administrative Code of 1929," is amended by adding a
27 section to read:
28 Section 709.1. Bureau of Risk Management.--(a) The Bureau
1 of Risk Management is hereby established in the Office of 2 Administration in the Governor's Office which shall be under the 3 supervision of a director appointed by the Governor by and with 4 the advice and consent of two-thirds of all members of the 5 Senate at a salary established by the Executive Board. 6 (b) The director shall be a Chartered Property and Casualty 7 Underwriter with a baccalaureate degree in a field of business 8 and at least five years practical experience in insurance agency 9 or brokerage operations. The degree requirement shall be deemed 10 satisfied by two additional years of experience in a managerial 11 capacity. 12 (c) The director shall have the authority to hire and set 13 employment qualifications for all such professional, technical 14 and clerical staff as may be necessary to carry out proper 15 functions of the bureau. 16 (d) The bureau shall have the power and its duty shall be: 17 (1) To identify and evaluate all the risks with which the 18 Commonwealth is faced. 19 (2) To formulate policies and assume complete responsibility 20 for avoiding, reducing, controlling, assuming and transferring 21 risks. 22 (3) To prepare detailed specifications for the transferring 23 of risks through insurance. 24 (4) To direct the Department of Property and Supplies to 25 obtain not less than three proposals from different insurance 26 companies specifying the form, rates, and commissions to be paid 27 to the Commonwealth for each policy determined to be needed by 28 the bureau. 29 (5) To promulgate rules and regulations to carry out the 30 risk management policies formulated. 19750H0271B0294 - 2 -
1 (6) To have complete access to all departments, bureaus, 2 boards, agencies, commissions, committees and authorities at all 3 times for the purpose of identifying and evaluating the 4 Commonwealth's risk. 5 (7) To consult with the Insurance Department before the 6 final approval of each insurance contract for its opinion that 7 the insurer chosen has the requisite financial integrity, 8 security and sound management to do business with the 9 Commonwealth. 10 (8) To review each policy selected by the Department of 11 Property and Supplies for conformity with the stated 12 specifications, and to give final approval thereto. 13 (9) To recommend legislation to the General Assembly for the 14 improvement of the Commonwealth's risk management. 15 (10) To do all other things necessary for the proper conduct 16 of the bureau. 17 Section 2. This act shall take effect in 90 days. L6L54JR/19750H0271B0294 - 3 -