PRINTER'S NO. 294

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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 -