PRINTER'S NO. 1667
No. 1464 Session of 1981
INTRODUCED BY McVERRY, MARMION, CESSAR, TADDONIO, DAWIDA,
MICHLOVIC, HEISER, HOEFFEL, POTT, NAHILL, KOWALYSHYN, RYBAK,
NOYE, PUNT, GAMBLE, BOWSER, KUKOVICH, GRUITZA, MORRIS,
SIEMINSKI, HALUSKA, PRATT, ARTY, SWAIM, WOGAN, BLAUM,
GRABOWSKI, MILLER, BURD, FRAZIER, LETTERMAN, ALDEN, ITKIN,
HAGARTY, LAUGHLIN, SAURMAN, LASHINGER, CORDISCO, PISTELLA,
REBER AND ROCKS, MAY 12, 1981
REFERRED TO COMMITTEE ON LABOR RELATIONS, MAY 12, 1981
AN ACT
1 Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as
2 amended, "An act defining the liability of an employer to pay
3 damages for injuries received by an employe in the course of
4 employment; establishing an elective schedule of
5 compensation; providing procedure for the determination of
6 liability and compensation thereunder; and prescribing
7 penalties," authorizing political subdivisions to enter into
8 agreements for joint self-insurance.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 305, act of June 2, 1915 (P.L.736,
12 No.338), known as "The Pennsylvania Workmen's Compensation Act,"
13 reenacted and amended June 21, 1939 (P.L.520, No.281) and
14 amended December 5, 1974 (P.L.782, No.263), is amended to read:
15 Section 305. (a) Every employer liable under this act to
16 pay compensation shall insure the payment of compensation in the
17 State Workmen's Insurance Fund, or in any insurance company, or
18 mutual association or company, authorized to insure such
1 liability in this Commonwealth, unless such employer shall be
2 exempted by the department from such insurance. Such insurer
3 shall assume the employer's liability hereunder and shall be
4 entitled to all of the employer's immunities and protection
5 hereunder except, that whenever any employer shall have
6 purchased insurance to provide benefits under this act to
7 persons engaged in domestic service, neither the employer nor
8 the insurer may invoke the provisions of section 321 as a
9 defense. An employer desiring to be exempt from insuring the
10 whole or any part of his liability for compensation shall make
11 application to the department, showing his financial ability to
12 pay such compensation, whereupon the department, if satisfied of
13 the applicant's financial ability, shall, upon the payment of a
14 fee of one hundred dollars ($100.00), issue to the applicant a
15 permit authorizing such exemption. The department shall
16 establish a period of twelve (12) calendar months, to begin and
17 end at such times as the department shall prescribe, which shall
18 be known as the annual exemption period. Unless previously
19 revoked, all permits issued under this section shall expire and
20 terminate on the last day of the annual exemption period for
21 which they were issued. Permits issued under this act shall be
22 renewed upon the filing of an application, and the payment of a
23 renewal fee of one hundred dollars ($100.00). The department
24 may, from time to time, require further statements of the
25 financial ability of such employer, and, if at any time such
26 employer appear no longer able to pay compensation, shall revoke
27 its permit granting exemption, in which case the employer shall
28 immediately subscribe to the State Workmen's Insurance Fund, or
29 insure his liability in any insurance company or mutual
30 association or company, as aforesaid.
19810H1464B1667 - 2 -
1 (b) Any employer who fails to comply with the provisions of
2 this section for every such failure, shall, upon summary
3 conviction before any official of competent jurisdiction, be
4 sentenced to pay a fine of not less than five hundred dollars
5 ($500) nor more than two thousand dollars ($2,000), and costs of
6 prosecution, or imprisonment for a period of not more than one
7 (1) year, or both. Every day's violation shall constitute a
8 separate offense. It shall be the duty of the department to
9 enforce the provisions of this section; and it shall investigate
10 all violations that are brought to its notice and shall
11 institute prosecutions for violations thereof. All fines
12 recovered under the provisions of this section shall be paid to
13 the department, and by it paid into the State Treasury.
14 (c) In any proceeding against an employer under this
15 section, a certificate of non-insurance issued by the official
16 Workmen's Compensation Rating and Inspection Bureau and a
17 certificate of the department showing that the defendant has not
18 been exempted from obtaining insurance under this section, shall
19 be prima facie evidence of the facts therein stated.
20 (d) When any employer fails to secure the payment of
21 compensation under this act as provided in sections 305 and
22 305.2, the injured employe or his dependents may proceed either
23 under this act or in a suit for damages at law as provided by
24 article II.
25 (e) (1) As used in this subsection, the term "political
26 subdivision" shall mean any county, city, borough, incorporated
27 town, township, school district, vocational school district,
28 intermediate unit, municipal authority, home rule, optional plan
29 or optional charter municipality and any authority created by
30 one or more political subdivisions.
19810H1464B1667 - 3 -
1 (2) Two or more political subdivisions may enter into
2 agreements to pool their liabilities under this act for the
3 purpose of qualifying as joint self-insurers.
4 (3) The department may promulgate, in the manner provided by
5 law, the rules and regulations necessary for the administration
6 of pooling agreements, and for the regulation of joint self-
7 insurers. The department may apply existing regulations, which
8 pertain to self-insurers, to joint self-insurers.
9 (4) Joint self-insurers may adopt such rules and regulations
10 as shall be approved by the department, necessary for the
11 internal regulation of its self-insurance program. Such rules
12 and regulations shall not be inconsistent with this act or the
13 departmental regulations promulgated hereunder.
14 Section 2. This act shall take effect immediately.
D14L77CVV/19810H1464B1667 - 4 -