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                                                      PRINTER'S NO. 1846

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1529 Session of 1999


        INTRODUCED BY EACHUS, VEON, STURLA, CAWLEY, GEORGE, BELARDI,
           ROBINSON, BEBKO-JONES, M. COHEN, MELIO, WOJNAROSKI, SOLOBAY,
           ROONEY, SHANER, BELFANTI, CAPPABIANCA, HARHAI, STABACK,
           DALEY, GIGLIOTTI, KENNEY, TANGRETTI, SURRA, DeLUCA, SERAFINI,
           TRAVAGLIO, GRUCELA, WALKO, MANN, FREEMAN, YUDICHAK, MYERS,
           RAMOS, WILLIAMS, STEELMAN AND THOMAS, MAY 17, 1999

        REFERRED TO COMMITTEE ON LABOR RELATIONS, MAY 17, 1999

                                     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 safety
     8     committees; imposing duties on the Department of Labor and
     9     Industry; establishing a grant program for safety and health
    10     education; identifying extrahazardous employers; and imposing
    11     penalties.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  Section 1002 of the act of June 2, 1915 (P.L.736,
    15  No.338), known as the Workers' Compensation Act, amended June
    16  24, 1996 (P.L.350, No.57), is amended to read:
    17     Section 1002.  (a)  An insured employer may make application
    18  to the department for the certification of any established
    19  safety committee operative within its workplace developed for
    20  the purpose of hazard detection and accident prevention. The


     1  department shall develop such certification criteria.
     2     (b)  Upon the renewal of the employer's workers' compensation
     3  policy [next following receipt of department certification], the
     4  employer shall receive a [five] seven per centum discount in the
     5  rate or rates applicable to the policy [for a period of one
     6  year. The five per centum discount shall continue for a total of
     7  five years if the employer, by affidavit, provides annual
     8  verification to the department and to the employer's insurer
     9  that the safety committee continues to be operative and
    10  continues to meet the certification requirements.] after all
    11  other rating factors are applied to the policy, provided that
    12  the employer maintains a certified safety committee and provides
    13  a copy of the current department certification to the insurer.
    14     (c)  The secretary may certify upon application that health
    15  and safety committees established under a collective bargaining
    16  agreement meet the minimum purposes and intent of the standards
    17  established by the secretary and are thereby exempt from the
    18  specific requirements of standards established by the secretary.
    19  Certification shall be granted only upon written application
    20  signed by the collective bargaining agent and the employer. The
    21  standards established by the secretary shall be construed as
    22  creating minimum requirements, and no collective bargaining
    23  agreements which establish additional duties and
    24  responsibilities for the health and safety committee shall be
    25  deemed to be in conflict with those standards.
    26     Section 2.  The act is amended by adding sections to read:
    27     Section 1003.  (a)  (1)  The department shall collect and
    28  serve as a repository for statistical information on workers'
    29  health and safety. The department shall analyze and use the
    30  information to identify and assign priorities to safety needs
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     1  and to better coordinate the safety service provided by public
     2  or private organizations, health and safety through educational
     3  programs and other innovative programs developed by the
     4  department.
     5     (2)  The department shall coordinate or supervise the
     6  collection of information relating to job safety by Federal or
     7  State entities, including information collected for the
     8  supplementary data system and the annual survey for the Bureau
     9  of Labor Statistics of the United States Department of Labor.
    10     (b)  With the approval of the secretary, the department may
    11  enter into contracts with the Federal Government to perform
    12  occupational safety projects and may apply for funds from the
    13  Federal Government through any Federal program relating to
    14  occupational safety.
    15     (c)  The secretary shall establish a grant program to provide
    16  occupational safety and health education and training services
    17  concerning the prevention of occupational diseases and injuries
    18  to employes and employers at locations throughout this
    19  Commonwealth. The department shall follow standard requirements
    20  that may be applicable or may promulgate rules and regulations,
    21  establish procedures and criteria necessary and appropriate to
    22  carry out this subsection, including, but not limited to,
    23  criteria for the evaluation and selection of applications for
    24  grants and the auditing of performance thereunder.
    25     (d)  The department shall publish or procure and issue or
    26  make available educational books, pamphlets, brochures, films,
    27  videotapes, and other informational and educational material
    28  directed to high-risk industries and employers and shall
    29  specifically address means and methods of avoiding common
    30  workers' injuries. Specific decisions as to what issues and
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     1  problems should be addressed by such information shall be made
     2  by the department after assigning appropriate priorities based
     3  on frequency of injuries, degree of hazard, severity of injuries
     4  and similar considerations. Such educational materials shall
     5  include specific references to the requirements of Federal and
     6  State laws and regulations, to recommendations and practices of
     7  business, industry, and trade associations, and, where needed,
     8  to recommend work practices based on recommendations made by the
     9  department for the prevention of injury.
    10     (e)  (1)  The department shall cooperate with business and
    11  industry trade associations, labor organizations and other
    12  entities to develop means and methods of educating employes and
    13  employers with regard to workplace safety.
    14     (2)  The department shall cooperate with other entities in
    15  the development and approval of safety courses, safety plans and
    16  safety programs.
    17     (f)  The department shall advise insurance carrier loss
    18  control service organizations of hazard classifications,
    19  specific employers, industries, occupations or geographic
    20  regions to which loss control services should be directed or of
    21  the identity and types of injuries or occupational diseases and
    22  means and methods for prevention of the same to which loss
    23  control services should be directed and shall advise insurance
    24  carrier loss control service organizations of safety needs and
    25  priorities developed by the department.
    26     Section 1004.  (a)  The department shall establish and
    27  maintain a job safety information system. The department shall
    28  obtain from any State agency, including specifically the
    29  Department of Health and the Insurance Department, data and
    30  statistics including specifically those compiled for the purpose
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     1  of ratemaking. The department shall consult with the Insurance
     2  Department in the design of data information and retrieval
     3  systems that will accomplish the mutual purposes of the
     4  Insurance Department and of the department. The Department of
     5  Health, the Insurance Department and all other departments,
     6  agencies, bureaus, boards and commissions of the Commonwealth,
     7  and rating bureaus approved by the Insurance Commissioner shall
     8  cooperate with the department in furtherance of the purposes of
     9  this article.
    10     (b)  Employers shall file with the department a report as
    11  required by section 438 of this act.
    12     (c)  The job safety information system shall include a
    13  comprehensive data base that incorporates all pertinent
    14  information relating to each reported injury, including, but not
    15  limited to:
    16     (1)  Age, sex, wage level, occupation, and insurance company
    17  payroll classification code of the injured employe.
    18     (2)  The nature, source and severity of the injury.
    19     (3)  The reported cause of the injury.
    20     (4)  The part of the body affected.
    21     (5)  Any equipment involved in the injury.
    22     (6)  The prior loss history of the employer.
    23     (7)  The standard industrial classification code of the
    24  employer.
    25     (8)  Any other information deemed useful for the purpose of
    26  statistical analysis.
    27     (d)  The identity of an employe shall be confidential and may
    28  not be disclosed as part of the job safety information system.
    29     Section 1005.  (a)  The department shall develop a program
    30  for identifying extrahazardous employers and shall notify each
    19990H1529B1846                  - 5 -

     1  identified extrahazardous employer and its insurance carrier
     2  that the employer has been identified as an extrahazardous
     3  employer.
     4     (b)  An employer that receives notification under this
     5  section shall obtain a safety consultation within thirty (30)
     6  days from the department or a safety consultant approved by the
     7  department. A written report by the safety consultant shall be
     8  filed with the department and the employer specifying any
     9  hazardous condition or practice identified by the safety
    10  consultant.
    11     (c)  A safety consultant referred to in this section shall be
    12  trained in the field of occupational safety and occupational
    13  health, where appropriate, depending upon the nature of the
    14  employer's establishment and the types of safety and health
    15  hazards identified therein. The consultant shall have a least
    16  three (3) years' experience in developing workplace accident and
    17  illness prevention plans and be:
    18     (1)  an industrial hygienist;
    19     (2)  a safety professional; or
    20     (3)  an individual who has completed a certified training
    21  program in accident or illness prevention services approved by
    22  the department.
    23     (d)  An employer that receives notification under this
    24  section must obtain a safety and health consultation from either
    25  the department or a safety and health consultant approved by the
    26  department within thirty (30) days of notification. Within sixty
    27  (60) days of an employer's receipt of notification pursuant to
    28  this section, a written report prepared by either the department
    29  or a safety and health consultant shall be filed with the
    30  department and with the employer. The report shall set forth any
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     1  hazardous conditions or practices identified by the safety and
     2  health consultation. Said report shall also formulate a specific
     3  accident and illness prevention plan addressing the hazardous
     4  conditions or practices identified by said report.
     5     (e)  An employer shall comply with any accident and illness
     6  prevention plan submitted to it under subsection (d) of this
     7  section.
     8     (f)  Six (6) months after the filing of an accident and
     9  illness prevention plan prescribed by subsection (d) of this
    10  section, the department shall inspect the employer's premises to
    11  evaluate compliance with the plan. The department may require
    12  the participation of the safety and health consultant who
    13  performed the initial consultation and formulated the plan. If
    14  the department determines that the employer has complied with
    15  the terms of the plan or has implemented other acceptable
    16  corrective measures, the department shall certify that
    17  determination.
    18     (g)  Failure to obtain or implement an accident and illness
    19  prevention plan as required by this section shall constitute a
    20  continuing civil violation subject to a maximum fine of two
    21  thousand dollars ($2,000) per day for each day. Each day of
    22  noncompliance with this section shall be a separate violation.
    23  All fines recovered under this section shall be paid to the
    24  department and deposited by the department into a restricted
    25  account to be established in the Workmen's Compensation
    26  Administration Fund created by section 446 of this act. The
    27  restricted account shall be known as the Health and Safety
    28  Account.
    29     (h)  If at the time of the follow-up inspection by the
    30  consultant required under this section, the employer continues
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     1  to be an extrahazardous employer, the department shall continue
     2  to monitor the safety conditions at the worksite, including
     3  conducting safety and health inspections where necessary and may
     4  formulate additional safety plans reasonably calculated to abate
     5  hazards. The employer shall comply with such plans and is
     6  subject to additional penalties for failure to implement the
     7  plan or plans.
     8     (i)  The department may investigate accidents occurring at
     9  the worksites of an employer for whom a plan has been formulated
    10  under this section, and the department may otherwise monitor the
    11  implementation of the accident and illness prevention plan as it
    12  finds necessary.
    13     (j)  The department may, at any time during its monitoring of
    14  an employer's compliance with an accident and illness prevention
    15  plan or additional safety plan formulated by the department
    16  under this section, seek an injunction in a court of competent
    17  jurisdiction if the department determines:
    18     (1)  That there exists imminent danger resulting in serious
    19  injury or death to any employe due to a hazardous workplace
    20  condition or practice.
    21     (2)  That the employer is not complying with the accident and
    22  illness prevention plan or additional safety plan formulated by
    23  the department.
    24     (k)  The department's identification of an employer as an
    25  extrahazardous employer under this section shall be inadmissible
    26  as evidence in any judicial proceeding.
    27     (l)  As used in this section, "extrahazardous employer" means
    28  an employer whose injury frequency is within the worst five per
    29  centum of those employers as compared to other industry as
    30  determined by the most discreet classification by the standard
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     1  industrial code for that industry for which the employer is
     2  engaged in substantially similar employment.
     3     Section 1006.  (a)  Notwithstanding any other provision of
     4  law, an insurance company desiring to write workers'
     5  compensation insurance in this Commonwealth shall maintain or
     6  provide accident prevention facilities as a prerequisite for a
     7  license to write such insurance. Proof of compliance with this
     8  section shall be provided to the Insurance Commissioner. Such
     9  facilities shall be adequate to furnish accident prevention
    10  required by the nature of its business or its policyholders'
    11  operations and shall include surveys, recommendations, training
    12  programs, consultations, analyses of accident causes, industrial
    13  hygiene and industrial health services to implement the program
    14  of accident prevention services. The insurance company, pursuant
    15  to its responsibilities under this section, shall employ or
    16  otherwise make available qualified accident and illness
    17  prevention personnel. Said personnel shall meet the
    18  qualifications set forth in regulations issued by the
    19  department.
    20     (b)  A self-insured employer shall maintain an accident and
    21  illness prevention program as a prerequisite for retention of
    22  its self-insured status. Such program shall be adequate to
    23  furnish accident prevention required by the nature of its
    24  business and shall include surveys, recommendations, training
    25  programs, consultations, analyses of accident causes, industrial
    26  hygiene and industrial health services. The self-insured
    27  employer, pursuant to its responsibilities under this section,
    28  shall employ or otherwise make available qualified accident and
    29  illness prevention personnel. These personnel shall meet the
    30  qualifications set forth in regulations issued by the
    19990H1529B1846                  - 9 -

     1  department.
     2     (c)  The department may conduct inspections to determine the
     3  adequacy of the injury prevention services required by this
     4  section at least once every two (2) years for each insurer.
     5     (d)  Notice that services required by this section are
     6  available to the employer from an insurance company must appear
     7  in no less than ten-point bold type on the front of each
     8  workers' compensation insurance policy delivered or issued for
     9  delivery in this Commonwealth.
    10     (e)  At least once each year, each insurance company must
    11  submit to the department detailed information on the type of
    12  accident prevention services offered or provided to the
    13  insurance company's policyholders. The information must include:
    14     (1)  The amount of money spent by the insurance company on
    15  accident prevention services.
    16     (2)  The number and qualifications of field safety
    17  representatives employed by the insurance company.
    18     (3)  The number of site inspections performed.
    19     (4)  Any accident prevention services for which the insurance
    20  company contracts.
    21     (5)  A breakdown of the premium size of the risks to which
    22  the insurance company provided services.
    23     (6)  Evidence of the effectiveness of and accomplishments in
    24  accident prevention.
    25     (7)  Any additional information required by the department.
    26     (f)  Failure to maintain or provide the injury prevention
    27  services required by this section shall constitute a continuing
    28  civil violation subject to a maximum fine of two thousand
    29  dollars ($2,000) per day for each day the accident prevention
    30  services are not maintained or provided. Each day of
    19990H1529B1846                 - 10 -

     1  noncompliance with this section shall be a separate violation.
     2  All fines recovered under this section shall be paid to the
     3  department and deposited by the department into the health and
     4  safety account established in section 1005(g) of this act.
     5     (g)  The department shall decide all resolutions of disputes
     6  between insurers and insureds relating to qualification of a
     7  loss control program that complies with this act.
     8     Section 1007.  In addition to any other assessment authorized
     9  by section 446 of this act, the department shall include in the
    10  section 446 assessment an amount necessary to administer and
    11  enforce the provisions of this article including the safety and
    12  health grant program.
    13     Section 1008.  The department may promulgate rules and
    14  regulations for the administration and enforcement of this
    15  article.
    16     Section 3.  This act shall take effect in 60 days.










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