PRINTER'S NO. 2362
No. 1766 Session of 2007
INTRODUCED BY COHEN, BELFANTI, SURRA, DALEY, TANGRETTI, MELIO,
GEORGE, CALTAGIRONE, JOSEPHS, JAMES, THOMAS, BLACKWELL,
BRENNAN, CURRY, HARKINS, HORNAMAN, MANDERINO, M. O'BRIEN,
PARKER, SIPTROTH, K. SMITH, SWANGER, WALKO AND YOUNGBLOOD,
JULY 17, 2007
REFERRED TO COMMITTEE ON LABOR RELATIONS, JULY 17, 2007
AN ACT
1 Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as
2 reenacted and amended, "An act defining the liability of an
3 employer to pay damages for injuries received by an employe
4 in the course of employment; establishing an elective
5 schedule of compensation; providing procedure for the
6 determination of liability and compensation thereunder; and
7 prescribing penalties," requiring contractors to provide
8 workers' compensation benefits to all employees.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 302(a) and (e) of the act of June 2, 1915
12 (P.L.736, No.338), known as the Workers' Compensation Act,
13 reenacted and amended June 21, 1939 (P.L.520, No.281) and
14 amended July 2, 1993 (P.L.190, No.44), is amended to read:
15 Section 302. (a) A contractor who subcontracts all or any
16 part of a contract and his insurer shall be liable for the
17 payment of compensation to the employes of the subcontractor.
18 [unless the subcontractor primarily liable for the payment of
19 such compensation has secured its payment as provided for in
1 this act. Any contractor or his insurer who shall become liable
2 hereunder for such compensation may recover the amount thereof
3 paid and any necessary expenses from the subcontractor primarily
4 liable therefor.]
5 For purposes of this subsection, a person who contracts with
6 another (1) to have work performed consisting of (i) the
7 removal, excavation or drilling of soil, rock or minerals, or
8 (ii) the cutting or removal of timber from lands, or (2) to have
9 work performed of a kind which is a regular or recurrent part of
10 the business, occupation, profession or trade of such person
11 shall be deemed a contractor, and such other person a
12 subcontractor. This subsection shall not apply, however, to an
13 owner or lessee of land principally used for agriculture who is
14 not a covered employer under this act and who contracts for the
15 removal of timber from such land.
16 * * *
17 (e) (1) Prior to issuing a building permit to a contractor,
18 a municipality shall require the contractor to present proof of
19 workers' compensation insurance [or an affidavit that the
20 contractor does not employ other individuals and is not required
21 to carry workers' compensation insurance].
22 (2) Every building permit issued by a municipality to a
23 contractor shall clearly set forth the name and workers'
24 compensation policy and the contractor's Federal or State
25 Employer Identification Number. This information shall be in
26 addition to any information required by municipal ordinance. If
27 the building permit is issued to an applicant which affirms it
28 is not obligated to maintain workers' compensation insurance
29 under this act, the permit shall clearly set forth the
30 contractor's Federal or State Employer Identification Number and
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1 the substance of the affirmation and that the applicant is not
2 permitted to employ any individual to perform work pursuant to
3 the building permit.
4 (3) Every municipality issuing a building permit shall be
5 named as a workers' compensation policy certificate holder of a
6 contractor-issued building permit. This certificate shall be
7 filed with the municipality's copy of the building permit. An
8 insurer issuing a policy which names a municipality as a
9 workers' compensation policy certificate holder pursuant to this
10 section shall be required to notify that municipality of the
11 expiration or cancellation of any such policy of insurance or
12 policy certificate within three working days of such
13 cancellation or expiration.
14 (4) A municipality shall issue a stop-work order to a
15 contractor who is performing work pursuant to a building permit,
16 upon receiving actual notice that the contractor's workers'
17 compensation insurance or State-approved self-insured status has
18 been cancelled. Also, if the municipality receives actual notice
19 that a permittee, having filed an affidavit of exemption from
20 workers' compensation insurance, has hired persons to perform
21 work pursuant to a building permit and does not maintain
22 required workers' compensation insurance, the municipality shall
23 issue a stop-work order. This order shall remain in effect until
24 proper workers' compensation coverage is obtained for all work
25 performed pursuant to the building permit.
26 * * *
27 Section 2. This act shall take effect immediately.
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