Regular Session 2023-2024 Senate Bill 1232 P.N. 1809

PRIOR PRINTER'S NO. 1667

PRINTER'S NO. 1809

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1232

Session of

2024

INTRODUCED BY PENNYCUICK, FARRY, BROWN, KANE, COSTA, SCHWANK,

LANGERHOLC, MUTH, SANTARSIERO, TARTAGLIONE, DILLON AND

FONTANA, MAY 31, 2024

AS AMENDED ON THIRD CONSIDERATION, JULY 8, 2024

AN ACT

Amending the act of June 2, 1915 (P.L.736, No.338), entitled "An

act defining the liability of an employer to pay damages for

injuries received by an employe in the course of employment;

establishing an elective schedule of compensation; providing

procedure for the determination of liability and compensation

thereunder; and prescribing penalties," in liability and

compensation, further providing for payment of compensation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 308 of the act of June 2, 1915 (P.L.736,

No.338), known as the Workers' Compensation Act, is amended to

read:

Section 308. (a) Except as hereinafter provided, all

compensation payable under this article shall be payable in

periodical installments, as the wages of the employe were

payable before the injury.

(b) At the request of an employe, person entitled to

compensation under section 307, employer or insurer,

compensation under this article shall be paid by direct deposit

to the account of the person entitled to the compensation. The

<--

employe or person entitled to compensation may request payment

be made to a payroll card account in lieu of direct deposit. The

payroll card account shall be provided at no cost to the employe

or person entitled to compensation. The following shall apply:

(B) COMPENSATION PAYABLE UNDER THIS ARTICLE SHALL BE PAID BY

DIRECT DEPOSIT TO THE ACCOUNT OF THE PERSON ENTITLED TO THE

COMPENSATION. THE PERSON ENTITLED TO COMPENSATION WHO DOES NOT

HAVE AN ACCOUNT WITH A FINANCIAL INSTITUTION CAPABLE OF

ACCEPTING A DIRECT DEPOSIT MAY REQUEST PAYMENT BE MADE BY PAPER

CHECK IN LIEU OF DIRECT DEPOSIT. THE FOLLOWING SHALL APPLY:

(1) Installments of compensation payable under this article

paid by direct deposit shall be subject to the following:

(i) After the effective date of this subparagraph, an

insurer or self-insured employer may permit or require payment

of compensation by direct deposit. If the insurer or self-

insured employer permits payment by direct deposit, the option

shall be available to all persons entitled to compensation from

the insurer or self-insured employer.

(ii) No later than one year after the effective date of this

subparagraph, all insurers and self-insured employers shall

permit payment of compensation by direct deposit.

(2) The insurer or self-insured employer shall notify the

persons entitled to compensation of the option or requirement to

receive compensation by direct deposit. Notification shall be

sent by first class mail or electronic mail and include a

payment authorization form. Notification shall be sent in

accordance with the following:

(i) Immediately upon the availability or requirement of

direct deposit by the insurer or self-insured employer.

(ii) Concurrently with a notice of compensation payable.

20240SB1232PN1809 - 2 -

<--

(iii) Simultaneous to the first check that is mailed out

immediately following the notification sent under subparagraph

(i).

(3) A person entitled to compensation, or the person's legal

guardian, who requests or is required by the employer or insurer

to receive compensation by direct deposit shall submit an

accurate and valid payment authorization form to the insurer or

self-insured employer. MADE IMMEDIATELY UPON THE AVAILABILITY OR

REQUIREMENT OF DIRECT DEPOSIT BY THE INSURER OR SELF-INSURED

EMPLOYER OR CONCURRENTLY WITH A NOTICE OF COMPENSATION PAYABLE.

(3) THE INSURER OR SELF-INSURED EMPLOYER SHALL PROVIDE THE

PERSON ENTITLED TO COMPENSATION WITH A PAYMENT AUTHORIZATION

FORM OR MAY DIRECT THE PERSON ENTITLED TO COMPENSATION TO AN

ONLINE AUTHORIZATION FORM.

(4) A PERSON ENTITLED TO COMPENSATION WHO REQUESTS TO

RECEIVE COMPENSATION BY DIRECT DEPOSIT SHALL SUBMIT AN ACCURATE

AND VALID PAYMENT AUTHORIZATION FORM OR A VALID ONLINE

AUTHORIZATION FORM TO THE INSURER OR SELF-INSURED EMPLOYER. The

following shall apply:

(i) The payment authorization form may be submitted

electronically if the insurer or self-insured employer has

agreed to accept the form electronically.

(ii) The insurer or self-insured employer shall not be

required to pay compensation by direct deposit unless the person

entitled to compensation , or the person's legal guardian, has

submitted a valid payment authorization form OR A VALID ONLINE

AUTHORIZATION FORM .

(iii) If the insurer or self-insured employer requires

payment by direct deposit and the employe or person entitled to

compensation does not submit a valid payment authorization form

20240SB1232PN1809 - 3 -

<--

OR VALID ONLINE AUTHORIZATION FORM within thirty days of

receiving notification of the requirement, the insurer or self-

insured employer may, at the discretion of the insurer or self-

insured employer :

(A) issue a payroll card to the employe or person entitled

to compensation and pay compensation to the payroll card; or

(B) temporarily pay compensation by check.

(4) , TEMPORARILY PAY COMPENSATION BY PAPER CHECK.

(5) A person entitled to compensation , or the person's legal

guardian, shall have the right to choose the deposit account to

which payment of compensation is made and may request to change

the deposit account designated to receive compensation or

discontinue direct deposit by submitting a revised payment

authorization form OR A REVISED ONLINE AUTHORIZATION FORM to the

insurer or self-insured employer. The deposit account shall be

subject to the following requirements:

(i) The person entitled to compensation , or the person's

legal guardian, shall have control and signatory access to the

chosen deposit account.

(ii) The deposit account shall be with a bank as defined

under 12 U.S.C. § 1813(a)(1) (relating to definitions) on the

effective date of this subparagraph or a credit union.

(iii) A deposit account may be changed no more than two

times in any calendar year, unless otherwise ordered by a

workers' compensation judge or a court of competent

jurisdiction.

(5) (6) For an employe or a person entitled to compensation

under section 307, payments of compensation may not be split

between multiple payment methods, and payments of compensation

made by direct deposit may not be split between multiple deposit

20240SB1232PN1809 - 4 -

<--

accounts.

(6) (7) A request to initiate direct deposit, change deposit

accounts or discontinue direct deposit shall be implemented

within forty-five days of receipt, provided that the payment

authorization form OR ONLINE AUTHORIZATION FORM is valid.

(7) (8) An insurer or a self-insured employer shall not be

responsible for replacing any money sent to REPAYING ANY MONEY

DEPOSITED INTO an incorrect account if the sole reason for the

error is incorrect information provided by the person entitled

to receive the money COMPENSATION . An insurer or a self-insured

employer shall take reasonable actions to attempt to recover the

money and any money later recovered by the insurer or self-

insured employer shall promptly be credited to the person

entitled to receive the money COMPENSATION .

(8) (9) Lump sum settlement payments made as a result of a

compromise and release agreement may be made by PAPER check

unless the insurer or self-insured employer agrees to make

payment by direct deposit.

(9) (10) A payment made on a claim with an expected duration

of sixty days or less may be made by PAPER check unless:

(i) The insurer or self-insured employer agrees to make

payment by direct deposit.

(ii) The employe or person entitled to compensation

previously received compensation by direct deposit and verifies

that the direct deposit account previously used is still valid.

payment authorization form for use by all insurers and self-

insured employers under this section. The form shall include,

but not be limited to, the following information:

(1) The name, telephone number, mailing address and email

20240SB1232PN1809 - 5 -

<--

address of the person entitled to compensation.

(2) The workers' compensation claim number.

(3) Whether the person entitled to compensation , or the

person's legal guardian, is requesting to initiate direct

deposit, change deposit accounts, discontinue direct deposit or

elects payment by payroll card account PAPER CHECK in lieu of

direct deposit.

(4) The name and address of the financial institution and

the account and routing numbers to which compensation shall be

sent.

(5) Acknowledgment that failure to notify the insurer or

self-insured employer of any change in financial institution or

account may delay receipt of compensation or settlement

proceeds.

(6) ACKNOWLEDGMENT THAT A FALSE STATEMENT OR FAILURE TO

DISCLOSE A MATERIAL FACT TO OBTAIN OR INCREASE COMPENSATION MAY

RESULT IN CRIMINAL PROSECUTION, DISQUALIFICATION OF BENEFITS AND

REPAYMENT OF MONEY DEPOSITED INTO THE ACCOUNT.

(6) (7) Acknowledgment that the person entitled to

compensation , or the person's legal guardian, shall notify the

insurer or self-insured employer of changes in circumstance that

affect entitlement to compensation payable under this article.

(d) As used in this section:

"Credit union" shall mean any of the following:

(1) A cooperative corporation incorporated under any of the

following:

(i) The former act of May 26, 1933 (P.L.1076, No.260),

referred to as the Credit Union Act.

(ii) The former act of September 20, 1961 (P.L.1548,

No.658), known as the "Credit Union Act."

20240SB1232PN1809 - 6 -

<--

(iii) The act of December 19, 1990 (P.L.834, No.198), known

as the "GAA Amendments Act of 1990."

(2) A credit union organized in accordance with the

provisions of 12 U.S.C. Ch. 14 (relating to Federal credit

unions).

"Direct deposit" shall mean a credit to a deposit account in

a financial institution made by electronic fund transfer.

"DIRECT DEPOSIT" SHALL MEAN A CREDIT TO A DEPOSIT ACCOUNT IN

A FINANCIAL INSTITUTION MADE BY ELECTRONIC FUND TRANSFER . THE

TERM DOES NOT INCLUDE MONEY LOADED ONTO A DEBIT CARD ASSOCIATED

WITH A FINANCIAL INSTITUTION.

"Electronic fund transfer" as defined in 15 U.S.C. § 1693a

(relating to definitions).

"ONLINE AUTHORIZATION FORM" SHALL MEAN A FORM ON A PUBLICLY

ACCESSIBLE INTERNET WEBSITE OR ELECTRONIC SERVICE, INCLUDING A

MOBILE APPLICATION, WHICH IS PRESCRIBED BY AN INSURER OR SELF-

INSURED EMPLOYER AND WHICH CONTAINS THE SAME INFORMATION AS THE

PAYMENT AUTHORIZATION FORM UNDER SUBSECTION (C).

"Payment authorization form" shall mean the payment

authorization form published under subsection (c).

"Payroll card account" shall mean an account that is directly

or indirectly established through an employer, to which

transfers of the employe's wages, salary, commissions or other

compensation are made.

"Persons entitled to compensation" shall mean an employe

entitled to compensation under this article or a person entitled

to compensation under section 307.

"PERSON ENTITLED TO COMPENSATION" SHALL MEAN AN EMPLOYE, A

PERSON ENTITLED TO COMPENSATION OR THE PERSON'S LEGAL

REPRESENTATIVE UNDER THIS ARTICLE.

20240SB1232PN1809 - 7 -

<--

"VALID ONLINE AUTHORIZATION FORM" SHALL MEAN A COMPLETED

ONLINE AUTHORIZATION FORM THAT CONTAINS ALL INFORMATION

NECESSARY FOR THE INSURER OR SELF-INSURED EMPLOYER TO INITIATE

DIRECT DEPOSIT, CHANGE DEPOSIT ACCOUNTS OR DISCONTINUE DIRECT

DEPOSIT.

"Valid payment authorization form" shall mean a completed

payment authorization form that contains the information

necessary for an insurer or self-insured employer to initiate

direct deposit, change deposit accounts , OR discontinue direct

deposit or initiate payment by payroll card account .

Section 2. This act shall apply to installments of

compensation paid on or after the effective date of this

section.

Section 3. This act shall take effect in 60 days.

20240SB1232PN1809 - 8 -

<--