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        PRIOR PRINTER'S NOS. 45, 1877                 PRINTER'S NO. 2334

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 59 Session of 2001


        INTRODUCED BY BARD, CIVERA, RUBLEY, YOUNGBLOOD, KENNEY, BARRAR,
           BASTIAN, BEBKO-JONES, BELARDI, BENNINGHOFF, BROWNE, CLARK,
           DAILEY, DALEY, DeLUCA, FAIRCHILD, GEIST, GRUCELA, HARHAI,
           HENNESSEY, HORSEY, LAUGHLIN, LEDERER, LYNCH, MANN, MARSICO,
           PISTELLA, READSHAW, ROEBUCK, ROSS, SCHRODER, SCHULER,
           B. SMITH, SOLOBAY, STABACK, STERN, E. Z. TAYLOR, THOMAS,
           TIGUE, TULLI, WILT, WOGAN, WOJNAROSKI, FREEMAN, SEMMEL,
           PETRARCA, CLYMER, EACHUS, McILHINNEY AND FORCIER,
           JANUARY 23, 2001

        AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
           JUNE 20, 2001

                                     AN ACT

     1  Amending Title 42 (Judiciary and Judicial Procedure) of the
     2     Pennsylvania Consolidated Statutes, ESTABLISHING LIMITATIONS   <--
     3     ON ASBESTOS-RELATED LIABILITIES RELATING TO CERTAIN MERGERS
     4     OR CONSOLIDATIONS; AND providing FOR THE NUMBER OF JUDGES OF   <--
     5     COURTS OF COMMON PLEAS IN CERTAIN JUDICIAL DISTRICTS AND for
     6     civil immunity for antidrug and town-watch volunteers.

     7     The General Assembly finds and declares as follows:
     8         (1)  The willingness of antidrug and town-watch
     9     volunteers to offer their services has been increasingly
    10     deterred by a perception that they put personal assets at
    11     risk in the event of tort actions seeking damages arising
    12     from their activities as volunteers.
    13         (2)  The contributions of antidrug and town-watch
    14     programs, activities and services to communities are
    15     diminished by the resulting unwillingness of individuals to
    16     serve either as volunteers or as officers, directors and

     1     trustees of nonprofit public and private organizations.
     2         (3)  It is in the public interest to strike a balance
     3     between the right of a person to seek redress for injury and
     4     the right of an individual to freely give time and energy
     5     without compensation as a volunteer working to reduce crime
     6     and drug use in the community, without fear of personal
     7     liability for acts undertaken in good faith, absent willful
     8     or wanton conduct on the part of the volunteer.
     9         (4)  This act is intended to encourage volunteers to
    10     contribute their services to reduce the amount of crime and
    11     drug use in their communities and at the same time provide a
    12     reasonable basis for redress of claims which may arise
    13     relating to those services.
    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16     Section 1.  Title 42 of the Pennsylvania Consolidated          <--
    17  Statutes is amended by adding a section to read:
    18     SECTION 1.  SECTION 911 OF TITLE 42 OF THE PENNSYLVANIA        <--
    19  CONSOLIDATED STATUTES IS AMENDED BY ADDING A SUBSECTION TO READ:
    20  § 911.  COURTS OF COMMON PLEAS.
    21     * * *
    22     (A.1)  INTERIM JUDGESHIP.--NOTWITHSTANDING THE PROVISIONS OF
    23  SUBSECTION (A), THE COURT OF COMMON PLEAS OF THE FOURTEENTH
    24  JUDICIAL DISTRICT SHALL CONSIST OF SIX JUDGES. THIS SUBSECTION
    25  SHALL EXPIRE UPON THE HAPPENING OF THE FIRST VACANCY ON THE
    26  COURT OF COMMON PLEAS OF THE FOURTEENTH JUDICIAL DISTRICT OR
    27  JANUARY 8, 2002, WHICHEVER IS LATER.
    28     * * *
    29     SECTION 2.  TITLE 42 IS AMENDED BY ADDING SECTIONS TO READ:
    30  § 7104.  LIMITATIONS ON ASBESTOS-RELATED LIABILITIES RELATING TO
    20010H0059B2334                  - 2 -

     1             CERTAIN MERGERS OR CONSOLIDATIONS.
     2     (A)  LIMITATION ON SUCCESSOR ASBESTOS-RELATED LIABILITIES.--
     3         (1)  EXCEPT AS FURTHER LIMITED IN PARAGRAPH (2), THE
     4     CUMULATIVE SUCCESSOR ASBESTOS-RELATED LIABILITIES OF A
     5     DOMESTIC CORPORATION THAT WAS INCORPORATED IN THIS
     6     COMMONWEALTH PRIOR TO MAY 1, 2001, SHALL BE LIMITED TO THE
     7     FAIR MARKET VALUE OF THE TOTAL ASSETS OF THE TRANSFEROR
     8     DETERMINED AT THE TIME OF THE MERGER OR CONSOLIDATION, AND
     9     SUCH CORPORATION SHALL HAVE NO RESPONSIBILITY FOR SUCCESSOR
    10     ASBESTOS-RELATED LIABILITIES IN EXCESS OF SUCH LIMITATION.
    11         (2)  IF THE TRANSFEROR HAD ASSUMED OR INCURRED SUCCESSOR
    12     ASBESTOS-RELATED LIABILITIES IN CONNECTION WITH A PRIOR
    13     MERGER OR CONSOLIDATION WITH A PRIOR TRANSFEROR, THEN THE
    14     FAIR MARKET VALUE OF THE TOTAL ASSETS OF THE PRIOR
    15     TRANSFEROR, DETERMINED AT THE TIME OF SUCH EARLIER MERGER OR
    16     CONSOLIDATION, SHALL BE SUBSTITUTED FOR THE LIMITATION SET
    17     FORTH IN PARAGRAPH (1) FOR PURPOSES OF DETERMINING THE
    18     LIMITATION OF LIABILITY OF A DOMESTIC CORPORATION.
    19     (B)  LIMITATION ON TOTAL ASSETS AVAILABLE TO SATISFY
    20  SUCCESSOR ASBESTOS-RELATED LIABILITIES.--
    21         (1)  EXCEPT AS FURTHER LIMITED IN PARAGRAPH (2), THE
    22     ASSETS OF A DOMESTIC CORPORATION THAT WAS INCORPORATED IN
    23     THIS COMMONWEALTH PRIOR TO MAY 1, 2001, SHALL BE EXEMPT FROM
    24     RESTRAINT, ATTACHMENT OR EXECUTION ON JUDGMENTS RELATED TO
    25     CLAIMS FOR SUCCESSOR ASBESTOS-RELATED LIABILITIES TO THE
    26     EXTENT THAT THE AGGREGATE OF THE AMOUNTS WHICH, AFTER THE
    27     TIME OF THE MERGER OR CONSOLIDATION AS TO WHICH THE FAIR
    28     MARKET VALUE OF TOTAL ASSETS IS DETERMINED FOR PURPOSES OF
    29     SUBSECTION (A) AND THIS SUBSECTION, ARE PAID OR COMMITTED TO
    30     BE PAID BY OR ON BEHALF OF THE CORPORATION, OR BY OR ON
    20010H0059B2334                  - 3 -

     1     BEHALF OF A TRANSFEROR, IN CONNECTION WITH SETTLEMENTS,
     2     JUDGMENTS OR OTHER DISCHARGES OF ASBESTOS CLAIMS, EXCEEDS THE
     3     FAIR MARKET VALUE OF THE TOTAL ASSETS OF THE TRANSFEROR,
     4     DETERMINED AT THE TIME OF THE MERGER OR CONSOLIDATION.
     5         (2)  IF THE TRANSFEROR HAD ASSUMED OR INCURRED SUCCESSOR
     6     ASBESTOS-RELATED LIABILITIES IN CONNECTION WITH A PRIOR
     7     MERGER OR CONSOLIDATION WITH A PRIOR TRANSFEROR, THEN THE
     8     FAIR MARKET VALUE OF THE TOTAL ASSETS OF THE PRIOR
     9     TRANSFEROR, DETERMINED AT THE TIME OF SUCH EARLIER MERGER OR
    10     CONSOLIDATION, SHALL BE SUBSTITUTED FOR THE LIMITATION SET
    11     FORTH IN PARAGRAPH (1) FOR PURPOSES OF DETERMINING THE EXTENT
    12     OF THE EXEMPTION OF THE ASSETS OF A DOMESTIC CORPORATION.
    13     (C)  BURDEN OF PROOF WITH RESPECT TO FAIR MARKET VALUE OF
    14  TOTAL ASSETS.--
    15         (1)  A DOMESTIC CORPORATION MAY ESTABLISH THE FAIR MARKET
    16     VALUE OF TOTAL ASSETS THROUGH ANY METHOD THAT IS REASONABLE
    17     IN THE CIRCUMSTANCES, INCLUDING, BUT NOT LIMITED TO, BY
    18     REFERENCE TO THE PURCHASE PRICE PAID FOR SUCH ASSETS IN AN
    19     ARM'S LENGTH TRANSACTION AND THE VALUE OF SUCH ASSETS
    20     RECORDED ON A BALANCE SHEET. THE FAIR MARKET VALUE OF TOTAL
    21     ASSETS NEED NOT BE SHOWN BY THE DOMESTIC CORPORATION BY
    22     MATHEMATICAL PRECISION OR CERTAINTY AND MAY BE ESTABLISHED BY
    23     A SHOWING THAT A REASONABLE DETERMINATION OF THE FAIR MARKET
    24     VALUE OF SUCH ASSETS IS MORE LIKELY THAN NOT LOWER THAN A
    25     SPECIFIED VALUE. ANY SUCH SHOWING BY THE DOMESTIC CORPORATION
    26     OF A REASONABLE DETERMINATION OF THE FAIR MARKET VALUE OF
    27     ASSETS SHALL BE PRIMA FACIE EVIDENCE OF SUCH FAIR MARKET
    28     VALUE.
    29         (2)  ONCE A REASONABLE DETERMINATION OF THE FAIR MARKET
    30     VALUE OF TOTAL ASSETS HAS BEEN THUS ESTABLISHED BY A DOMESTIC
    20010H0059B2334                  - 4 -

     1     CORPORATION, A CLAIMANT DISPUTING THAT DETERMINATION OF VALUE
     2     SHALL THEN HAVE THE BURDEN OF ESTABLISHING BY CLEAR AND
     3     CONVINCING EVIDENCE A DIFFERENT FAIR MARKET VALUE OF SUCH
     4     ASSETS.
     5     (D)  TRANSFER OF CLAIM TO AVOID POLICY OF COMMONWEALTH.--THE
     6  PROVISIONS OF SECTION 8128 (RELATING TO TRANSFER OF CLAIM TO
     7  AVOID POLICY OF COMMONWEALTH) SHALL APPLY TO THE LIMITATION ON
     8  ASSETS SET FORTH IN SUBSECTION (B).
     9     (E)  APPLICATION.--
    10         (1)  THE LIMITATIONS SET FORTH IN SUBSECTIONS (A) AND (B)
    11     SHALL APPLY TO MERGERS OR CONSOLIDATIONS EFFECTED UNDER THE
    12     LAWS OF THIS COMMONWEALTH OR ANOTHER JURISDICTION CONSUMMATED
    13     BEFORE MAY 1, 2001.
    14         (2)  THIS SECTION SHALL NOT APPLY TO AN INSURANCE
    15     CORPORATION AS DEFINED IN 15 PA.C.S. § 3102 (RELATING TO
    16     DEFINITIONS).
    17         (3)  THE LIMITATIONS SET FORTH IN SUBSECTIONS (A) AND (B)
    18     SHALL APPLY TO A DOMESTIC CORPORATION, INCORPORATED AFTER THE
    19     DATE OF THIS SECTION, THAT ASSUMES OR INCURS LIABILITIES
    20     WHICH CONSTITUTE SUCCESSOR ASBESTOS-RELATED LIABILITIES OF
    21     ANOTHER DOMESTIC CORPORATION, AND SUCH LIABILITIES SHALL
    22     THEREAFTER CONTINUE TO CONSTITUTE SUCCESSOR ASBESTOS-RELATED
    23     LIABILITIES.
    24     (F)  DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
    25  WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
    26  SUBSECTION:
    27     "ASBESTOS CLAIM."  ANY CLAIM, WHEREVER OR WHENEVER MADE, FOR
    28  DAMAGES, LOSSES, INDEMNIFICATION, CONTRIBUTION OR OTHER RELIEF,
    29  ARISING OUT OF, BASED ON, OR IN ANY WAY RELATED TO ASBESTOS,
    30  INCLUDING, BUT NOT LIMITED TO, PROPERTY DAMAGE CAUSED BY THE
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     1  INSTALLATION, PRESENCE OR REMOVAL OF ASBESTOS, THE HEALTH
     2  EFFECTS OF EXPOSURE TO ASBESTOS, INCLUDING ANY CLAIM FOR
     3  PERSONAL INJURY, DEATH, MENTAL OR EMOTIONAL INJURY, RISK OF
     4  DISEASE OR OTHER INJURY OR THE COSTS OF MEDICAL MONITORING OR
     5  SURVEILLANCE. THE TERM ALSO INCLUDES ANY CLAIM MADE BY OR ON
     6  BEHALF OF ANY PERSON EXPOSED TO ASBESTOS OR ANY REPRESENTATIVE,
     7  SPOUSE, PARENT, CHILD OR OTHER RELATIVE OF ANY SUCH PERSON.
     8     "DOMESTIC CORPORATION."  A DOMESTIC CORPORATION AS DEFINED IN
     9  15 PA.C.S. § 102 (RELATING TO DEFINITIONS).
    10     "SUCCESSOR ASBESTOS-RELATED LIABILITIES."  ANY LIABILITIES
    11  WHETHER KNOWN OR UNKNOWN, ASSERTED OR UNASSERTED, ABSOLUTE OR
    12  CONTINGENT, ACCRUED OR UNACCRUED, LIQUIDATED OR UNLIQUIDATED, OR
    13  DUE OR TO BECOME DUE, RELATED IN ANY WAY TO ASBESTOS CLAIMS,
    14  THAT WERE ASSUMED OR INCURRED BY A CORPORATION AS A RESULT OF OR
    15  IN CONNECTION WITH A MERGER OR CONSOLIDATION, OR THE PLAN OF
    16  MERGER OR CONSOLIDATION RELATED THERETO, WITH OR INTO ANOTHER
    17  CORPORATION EFFECTED UNDER THE LAWS OF THIS COMMONWEALTH OR
    18  ANOTHER JURISDICTION, OR WHICH ARE RELATED IN ANY WAY TO
    19  ASBESTOS CLAIMS BASED ON THE EXERCISE OF CONTROL OR THE
    20  OWNERSHIP OF STOCK OF SUCH CORPORATION PRIOR TO SUCH MERGER OR
    21  CONSOLIDATION. SUCCESSOR ASBESTOS-RELATED LIABILITIES SHALL
    22  INCLUDE LIABILITIES WHICH, AFTER THE TIME OF THE MERGER OR
    23  CONSOLIDATION AS TO WHICH THE FAIR MARKET VALUE OF TOTAL ASSETS
    24  IS DETERMINED FOR PURPOSES OF SUBSECTIONS (A) AND (B), ARE PAID
    25  OR OTHERWISE DISCHARGED, OR COMMITTED TO BE PAID OR OTHERWISE
    26  DISCHARGED, BY OR ON BEHALF OF THE CORPORATION, OR BY OR ON
    27  BEHALF OF A TRANSFEROR, IN CONNECTION WITH SETTLEMENTS,
    28  JUDGMENTS OR OTHERWISE.
    29     "TRANSFEROR."  A CORPORATION FROM WHOM SUCCESSOR ASBESTOS-
    30  RELATED LIABILITIES ARE ASSUMED OR INCURRED.
    20010H0059B2334                  - 6 -

     1  § 8332.6.  Antidrug and town-watch volunteer civil immunity.
     2     (a)  General rule.--An antidrug or town-watch volunteer who
     3  acts in good faith and within the scope of the volunteer's role
     4  with an antidrug or crime prevention volunteer organization or
     5  government agency shall be immune from civil liability for
     6  damage caused by acts or omissions unless all of the following
     7  apply:
     8         (1)  The conduct of the volunteer falls substantially
     9     below the standards generally practiced and accepted in like
    10     circumstances by similar persons rendering such services.
    11         (2)  It is shown that the volunteer performed an act or
    12     failed to perform an act which the volunteer was under a
    13     recognized duty to another to perform, knowing or having
    14     reason to know that such act or omission created a
    15     substantial risk or actual harm to the person or property of
    16     another. It is insufficient to impose liability under this
    17     paragraph to establish only that the conduct of the volunteer
    18     fell below ordinary standards of care.
    19     (b)  Definitions.--As used in this section, the following
    20  words and phrases shall have the meanings given to them in this
    21  subsection:
    22     "Antidrug or town-watch volunteer."  A person performing
    23  services for an antidrug or town-watch volunteer organization or
    24  government agency without compensation other than reimbursement
    25  for actual expenses incurred. The term includes a volunteer
    26  serving as a director, officer, trustee or direct service
    27  volunteer.
    28     "Antidrug or town-watch volunteer organization."  A nonprofit
    29  organization, corporate volunteer program, medical facility or
    30  substance abuse treatment program that uses volunteers to reduce
    20010H0059B2334                  - 7 -

     1  crime and drug use in the community.
     2     "Corporate volunteer program."  A program administered by an
     3  entity other than a nonprofit organization or government agency
     4  that enlists primarily its own employees, retirees, partners or
     5  professional affiliates in a volunteer capacity to achieve
     6  objectives that would qualify as charitable under section 501(c)
     7  of the Internal Revenue Code of 1986 (Public Law 99-514, 26
     8  U.S.C. § 501(c)).
     9     "Nonprofit organization."  An organization which is described
    10  in section 501(c) of the Internal Revenue Code of 1986 (Public
    11  Law 99-514, 26 U.S.C. § 501(c)), whether or not it has been
    12  certified by the Internal Revenue Service.
    13     Section 2.  This act shall take effect in 60 days.             <--
    14     SECTION 3.  (A)  THE PROVISIONS OF 42 PA.C.S. § 3135 SHALL     <--
    15  NOT BE APPLICABLE TO THE SELECTION OF THE JUDGE FOR THE
    16  JUDGESHIP CREATED BY THE ADDITION OF 42 PA.C.S. § 911(A.1).
    17     (B)  THE NEW JUDGESHIP ADDED BY THE ADDITION OF 42 PA.C.S. §
    18  911(A.1) SHALL BE CREATED ON JANUARY 7, 2002, AND SHALL BE
    19  INITIALLY FILLED BY ELECTION AT THE 2001 MUNICIPAL ELECTION.
    20     (C)  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE
    21  CONTRARY, THE PERSON OR PERSONS NOMINATED IN THE PRIMARY
    22  ELECTION HELD FOR A JUDGESHIP IN THE FOURTEENTH JUDICIAL
    23  DISTRICT ON MAY 15, 2001, SHALL BE DEEMED TO HAVE BEEN NOMINATED
    24  FOR THE NEW JUDGESHIP ADDED BY THE ADDITION OF 42 PA.C.S. §
    25  911(A.1).
    26     (D)  EXCEPT AS PROVIDED BY SUBSECTION (C), THE PROVISIONS OF
    27  THE ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
    28  PENNSYLVANIA ELECTION CODE, SHALL APPLY TO THE ELECTION FOR THE
    29  NEWLY CREATED JUDGESHIP.
    30     SECTION 4.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    20010H0059B2334                  - 8 -

     1         (1)  THE AMENDMENT OF 42 PA.C.S. § 911 SHALL TAKE EFFECT
     2     IMMEDIATELY.
     3         (2)  THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.
     4         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
     5     DAYS.

















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