PRIOR PRINTER'S NOS. 45, 1877 PRINTER'S NO. 2334
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 20010H0059B2334 - 5 -
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. L14L42DMS/20010H0059B2334 - 9 -