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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 931, 2358                PRINTER'S NO. 2390

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 813 Session of 2001


        INTRODUCED BY ARMSTRONG, TARTAGLIONE, STOUT, THOMPSON, CORMAN,
           LAVALLE, M. WHITE, EARLL, ORIE, HELFRICK, O'PAKE, COSTA,
           SCARNATI, SCHWARTZ, WAUGH, MADIGAN, DENT, GREENLEAF, LEMMOND,
           PUNT AND GERLACH, APRIL 27, 2001

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, NOVEMBER 19, 2002

                                     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," further providing for THE SCHEDULE OF  <--
     8     COMPENSATION AND FOR the discount rate on workers'
     9     compensation insurance policies.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Section 1002 of the act of June 2, 1915 (P.L.736,  <--
    13  No.338), known as the Workers' Compensation Act, reenacted and
    14  amended June 21, 1939 (P.L.520, No.281) and amended June 24,
    15  1996 (P.L.350, No.57), is amended to read:
    16     SECTION 1.  SECTIONS 306(B) AND 1002 OF THE ACT OF JUNE 2,     <--
    17  1915 (P.L.736, NO.338), KNOWN AS THE WORKERS' COMPENSATION ACT,
    18  REENACTED AND AMENDED JUNE 21, 1939 (P.L.520, NO.281), AND
    19  AMENDED JUNE 24, 1996 (P.L.350, NO.57), ARE AMENDED TO READ:


     1     SECTION 306.  THE FOLLOWING SCHEDULE OF COMPENSATION IS
     2  HEREBY ESTABLISHED:
     3     * * *
     4     (B)  (1)  FOR DISABILITY PARTIAL IN CHARACTER CAUSED BY THE
     5  COMPENSABLE INJURY OR DISEASE (EXCEPT THE PARTICULAR CASES
     6  MENTIONED IN CLAUSE (C)) SIXTY-SIX AND TWO-THIRDS PER CENTUM OF
     7  THE DIFFERENCE BETWEEN THE WAGES OF THE INJURED EMPLOYE, AS
     8  DEFINED IN SECTION 309, AND THE EARNING POWER OF THE EMPLOYE
     9  THEREAFTER; BUT SUCH COMPENSATION SHALL NOT BE MORE THAN THE
    10  MAXIMUM COMPENSATION PAYABLE. THIS COMPENSATION SHALL BE PAID
    11  DURING THE PERIOD OF SUCH PARTIAL DISABILITY EXCEPT AS PROVIDED
    12  IN CLAUSE (E) OF THIS SECTION, BUT FOR NOT MORE THAN FIVE
    13  HUNDRED WEEKS. SHOULD TOTAL DISABILITY BE FOLLOWED BY PARTIAL
    14  DISABILITY, THE PERIOD OF FIVE HUNDRED WEEKS SHALL NOT BE
    15  REDUCED BY THE NUMBER OF WEEKS DURING WHICH COMPENSATION WAS
    16  PAID FOR TOTAL DISABILITY. THE TERM "EARNING POWER," AS USED IN
    17  THIS SECTION, SHALL IN NO CASE BE LESS THAN THE WEEKLY AMOUNT
    18  WHICH THE EMPLOYE RECEIVES AFTER THE INJURY; AND IN NO INSTANCE
    19  SHALL AN EMPLOYE RECEIVING COMPENSATION UNDER THIS SECTION
    20  RECEIVE MORE IN COMPENSATION AND WAGES COMBINED THAN THE CURRENT
    21  WAGES OF A FELLOW EMPLOYE IN EMPLOYMENT SIMILAR TO THAT IN WHICH
    22  THE INJURED EMPLOYE WAS ENGAGED AT THE TIME OF THE INJURY.
    23     (2)  "EARNING POWER" SHALL BE DETERMINED BY THE WORK THE
    24  EMPLOYE IS CAPABLE OF PERFORMING AND SHALL BE BASED UPON EXPERT
    25  OPINION EVIDENCE WHICH INCLUDES JOB LISTINGS WITH AGENCIES OF
    26  THE DEPARTMENT, PRIVATE JOB PLACEMENT AGENCIES AND
    27  ADVERTISEMENTS IN THE USUAL EMPLOYMENT AREA. DISABILITY PARTIAL
    28  IN CHARACTER SHALL APPLY IF THE EMPLOYE IS ABLE TO PERFORM HIS
    29  PREVIOUS WORK OR CAN, CONSIDERING THE EMPLOYE'S RESIDUAL
    30  PRODUCTIVE SKILL, EDUCATION, AGE AND WORK EXPERIENCE, ENGAGE IN
    20010S0813B2390                  - 2 -

     1  ANY OTHER KIND OF SUBSTANTIAL GAINFUL EMPLOYMENT WHICH EXISTS IN
     2  THE USUAL EMPLOYMENT AREA IN WHICH THE EMPLOYE LIVES WITHIN THIS
     3  COMMONWEALTH. IF THE EMPLOYE DOES NOT LIVE IN THIS COMMONWEALTH,
     4  THEN THE USUAL EMPLOYMENT AREA WHERE THE INJURY OCCURRED SHALL
     5  APPLY. IF THE EMPLOYER HAS A SPECIFIC JOB VACANCY THE EMPLOYE IS
     6  CAPABLE OF PERFORMING, THE EMPLOYER SHALL OFFER SUCH JOB TO THE
     7  EMPLOYE. IN ORDER TO ACCURATELY ASSESS THE EARNING POWER OF THE
     8  EMPLOYE, THE INSURER MAY REQUIRE THE EMPLOYE TO SUBMIT TO AN
     9  INTERVIEW BY [AN] A VOCATIONAL EXPERT [APPROVED BY THE
    10  DEPARTMENT AND] WHO IS SELECTED BY THE INSURER AND WHO MEETS THE
    11  MINIMUM QUALIFICATIONS ESTABLISHED BY THE DEPARTMENT THROUGH
    12  REGULATION.
    13     (3)  IF THE INSURER RECEIVES MEDICAL EVIDENCE THAT THE
    14  CLAIMANT IS ABLE TO RETURN TO WORK IN ANY CAPACITY, THEN THE
    15  INSURER MUST PROVIDE PROMPT WRITTEN NOTICE, ON A FORM PRESCRIBED
    16  BY THE DEPARTMENT, TO THE CLAIMANT, WHICH STATES ALL OF THE
    17  FOLLOWING:
    18     (I)  THE NATURE OF THE EMPLOYE'S PHYSICAL CONDITION OR CHANGE
    19  OF CONDITION.
    20     (II)  THAT THE EMPLOYE HAS AN OBLIGATION TO LOOK FOR
    21  AVAILABLE EMPLOYMENT.
    22     (III)  THAT PROOF OF AVAILABLE EMPLOYMENT OPPORTUNITIES MAY
    23  JEOPARDIZE THE EMPLOYE'S RIGHT TO RECEIPT OF ONGOING BENEFITS.
    24     (IV)  THAT THE EMPLOYE HAS THE RIGHT TO CONSULT WITH AN
    25  ATTORNEY IN ORDER TO OBTAIN EVIDENCE TO CHALLENGE THE INSURER'S
    26  CONTENTIONS.
    27     * * *
    28     Section 1002.  (a)  An insured employer may make application
    29  to the department for the certification of any established
    30  safety committee operative within its workplace developed for
    20010S0813B2390                  - 3 -

     1  the purpose of hazard detection and accident prevention. The
     2  department shall develop such certification criteria.
     3     (b)  Upon the renewal of the employer's workers' compensation
     4  policy next following receipt of department certification, the
     5  employer shall receive [a] AN ANNUAL five per centum discount in  <--
     6  the rate or rates applicable to the policy [for a period of one   <--
     7  year. The five per centum discount shall continue [for a total    <--
     8  of five years] indefinitely if the employer, [by affidavit] ON A  <--
     9  FORM PRESCRIBED BY THE DEPARTMENT, provides annual verification
    10  to the department and to the employer's insurer that the safety
    11  committee continues to be operative and continues to meet the
    12  certification requirements.
    13     SECTION 2.  THE AMENDMENT OF SECTION 1002(B) OF THE ACT SHALL  <--
    14  APPLY TO POLICIES ISSUED OR RENEWED ON OR AFTER THE EFFECTIVE
    15  DATE OF THIS ACT.
    16     Section 2 3.  This act shall take effect immediately.          <--
    17     SECTION 3.  ALL REGULATIONS AND PARTS OF REGULATIONS WHICH     <--
    18  ARE INCONSISTENT WITH THE AMENDMENT OF SECTION 306(B) OF THE ACT
    19  ARE ABROGATED.
    20     SECTION 4.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    21         (1)  THE FOLLOWING PROVISIONS SHALL TAKE EFFECT
    22     IMMEDIATELY:
    23             (I)  THE AMENDMENT OF SECTION 1002 OF THE ACT.
    24             (II)  SECTION 2 OF THIS ACT.
    25             (III)  THIS SECTION.
    26         (2)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
    27     DAYS.


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