Pennsylvania has banned municipalities from charging fees for their police departments answering calls to automobile accidents.

The bill, HB131, passed the state Senate Tuesday by a 49-0 vote. The state Assembly passed the legislation in May by a 190-7 vote. Insurers provided strong support for the measure.

Municipalities are still allowed to charge for the reprinting of accident reports but cannot charge a fee or seek reimbursement for the cost of their police departments responding to a motor vehicle accident.

"Pennsylvania is demonstrating leadership by advancing this legislation," said Angela Zaydon, regional manager and counsel for Property Casualty Insurers Association of America (PCI), in a statement.

She called the practice a form of double taxation because police services are paid through local taxes and are not covered by insurance. The cost was ranging from $100 to as much as $2,100.

Local municipalities, strapped for cash, were using the fees to help cover costs, she noted.

In Indiana the state legislature is considering a similar ban. HEA1274 received legislative approval in May, before Pennsylvania's passage, but the bill was vetoed by Gov. Mitch Daniels.

In Indiana, municipalities' charges can range anywhere from $200 to $500.

Jay Kenworthy, a spokesman for the Insurance Institute of Indiana, said Gov. Daniels' opposition to the bill arises from a provision that would cap accident report fees at $8.

The state police report fees are $12 and are handled by a private vendor. Mr. Kenworthy said the governor has said he feels such a cap would not cover the real cost of producing accident reports.

There are indications, he went on to say, that the legislature is trying to work out a compromise on that part of the issue.

He said the governor has no opposition to banning municipalities from charging for accident response.

Special Reports /

Pa. Bans Charging Insurers For Auto Accidents

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