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S1101.......................................by COMMERCE AND HUMAN RESOURCES WORKER'S COMPENSATION - Amends existing law to allow third party liability in worker's compensation cases if the employers or their employee or employees engaged in gross negligence, recklessness or intentional misconduct which was the cause of the injury, occupational disease or death. 02/03 Senate intro - 1st rdg - to printing 02/04 Rpt prt - to Com/HuRes
S1101|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1101 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO THIRD PARTY LIABILITY IN WORKER'S COMPENSATION CASES; AMENDING 3 SECTION 72-223, IDAHO CODE, TO ALLOW THIRD PARTY LIABILITY IF THE EMPLOY- 4 ERS OR THEIR EMPLOYEE OR EMPLOYEES ENGAGED IN GROSS NEGLIGENCE, RECKLESS- 5 NESS OR INTENTIONAL MISCONDUCT WHICH IS THE CAUSE OF THE INJURY, OCCUPA- 6 TIONAL DISEASE OR DEATH. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 72-223, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 72-223. THIRD PARTY LIABILITY. (1) The right to compensation under this 11 law shall not be affected by the fact that the injury, occupational disease or 12 death is caused under circumstances creating in some person other than the 13 employer a legal liability to pay damages therefor, such person so liable 14 being referred to as the third party. Such third partyshall not15 may include those employers described in section 72-216, Idaho 16 Code, having under them contractors or subcontractors who have in fact com- 17 plied with the provisions of section 72-301, Idaho Code; nor18 , if those employers or their employee or employees engaged in gross negli- 19 gence, recklessness or intentional misconduct which is the cause of the 20 injury, occupational disease or death. The third party shall not 21 include the owner or lessee of premises, or other person who is virtually the 22 proprietor or operator of the business there carried on, but who, by reason of 23 there being an independent contractor or for any other reason, is not the 24 direct employer of the workmen there employed. 25 (2) Action may be instituted against such third party by the employee, or 26 in event compensation has been claimed and awarded, by the employee and 27 employer jointly, in the employee's name, or, if the employee refuses to par- 28 ticipate in such action, by the employer in the employee's name. 29 (3) If compensation has been claimed and awarded, the employer having 30 paid such compensation or having become liable therefor, shall be subrogated 31 to the rights of the employee, to recover against such third party to the 32 extent of the employer's compensation liability. 33 (4) On any recovery by the employee against a third party, the employer 34 shall pay or have deducted from his subrogated portion thereof, a proportion- 35 ate share of the costs and attorney's fees incurred by the employee in obtain- 36 ing such recovery. 37 (5) If death results from the injury or occupational disease and if the 38 employee leaves no dependents entitled to benefits under this law, the surety 39 shall have a right of action against the third party for recovery of income 40 benefits, reasonable expenses of medical and related services and burial 41 expense actually paid by the surety and for recovery of amounts paid into the 42 industrial special indemnity account pursuant to section 72-420, Idaho Code, 2 1 and such right of action shall be in addition to any cause of action of the 2 heirs or personal representatives of the deceased. 3 (6) All rights and restrictions herein granted to the employer have pre- 4 viously been intended to be, and are hereby expressly granted to the indus- 5 trial special indemnity account.
STATEMENT OF PURPOSE
RS08574
The purpose of this amendment to Section 72-223, Idaho Code, is to correct some
unintended consequences that occurred as the result of the passage of Senate Bill No. 1437 in
1996. Under this proposal, an employer who has contractors or subcontractors under him who
have worker's compensation insurance could be subject to suit by an employee of the contractor
or subcontractor if gross negligence, recklessness or imtentional misconduct occurs by those
employers or their employee or employees which is the cause of the injury, occupational disease or death. Also a person who could not be subject to suit would be the owner or lessee of
premises, or other person who is the proprietor or owner of the business there carried on, but who
is not the direct employer of the workers employed there because of there being an independent
contractor, or for any other reason.
FISCAL IMPACT
None
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CONTACT: Senator James Risch 332-1303 ,
STATEMENT OF PURPOSE/FISCAL NOTE S 1101