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SENATE BILL NO. 1097

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Daily Data Tracking History

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S1097.......................................by COMMERCE AND HUMAN RESOURCES
WORKER'S COMPENSATION - Amends existing law to provide that in worker's
compensation cases a third party shall include certain employers having
under them contractors or subcontractors; and to delete language excluding
the owner or lessee of premises or a business who is not the direct
employer of the workmen being employed.

02/03    Senate intro - 1st rdg - to printing
02/04    Rpt prt - to Com/HuRes

Bill Text

S1097


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1097

                        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 PROVIDE THAT A THIRD PARTY SHALL INCLUDE
 4        CERTAIN EMPLOYERS HAVING UNDER THEM CONTRACTORS OR SUBCONTRACTORS  AND  TO
 5        DELETE  LANGUAGE  EXCLUDING  THE OWNER OR LESSEE OF PREMISES OR A BUSINESS
 6        WHO BY REASON OF THERE BEING AN INDEPENDENT CONTRACTOR OR  FOR  ANY  OTHER
 7        REASON IS NOT THE DIRECT EMPLOYER OF THE WORKMEN BEING EMPLOYED.

 8    Be It Enacted by the Legislature of the State of Idaho:

 9        SECTION  1.  That  Section  72-223, Idaho Code, be, and the same is hereby
10    amended to read as follows:

11        72-223.  THIRD PARTY LIABILITY. (1) The right to compensation  under  this
12    law shall not be affected by the fact that the injury, occupational disease or
13    death  is  caused  under  circumstances creating in some person other than the
14    employer a legal liability to pay damages  therefor,  such  person  so  liable
15    being  referred to as the third party. Such third party shall  not 
16    include those employers described in section 72-216, Idaho Code, having  under
17    them  contractors  or subcontractors who have in fact complied with the provi-
18    sions of section 72-301, Idaho Code ; nor include the owner or lessee  of
19    premises,  or  other person who is virtually the proprietor or operator of the
20    business there carried on, but who, by reason of there  being  an  independent
21    contractor  or for any other reason, is not the direct employer of the workmen
22    there employed .
23        (2)  Action may be instituted against such third party by the employee, or
24    in event compensation has been  claimed  and  awarded,  by  the  employee  and
25    employer  jointly, in the employee's name, or, if the employee refuses to par-
26    ticipate in such action, by the employer in the employee's name.
27        (3)  If compensation has been claimed and  awarded,  the  employer  having
28    paid  such  compensation or having become liable therefor, shall be subrogated
29    to the rights of the employee, to recover against  such  third  party  to  the
30    extent of the employer's compensation liability.
31        (4)  On  any  recovery by the employee against a third party, the employer
32    shall pay or have deducted from his subrogated portion thereof, a  proportion-
33    ate share of the costs and attorney's fees incurred by the employee in obtain-
34    ing such recovery.
35        (5)  If  death  results from the injury or occupational disease and if the
36    employee leaves no dependents entitled to benefits under this law, the  surety
37    shall  have  a  right of action against the third party for recovery of income
38    benefits, reasonable expenses of  medical  and  related  services  and  burial
39    expense  actually paid by the surety and for recovery of amounts paid into the
40    industrial special indemnity account pursuant to section 72-420,  Idaho  Code,
41    and  such  right  of action shall be in addition to any cause of action of the
42    heirs or personal representatives of the deceased.
43        (6)  All rights and restrictions herein granted to the employer have  pre-


                                          2

 1    viously  been  intended  to be, and are hereby expressly granted to the indus-
 2    trial special indemnity account.

Statement of Purpose / Fiscal Impact

                         STATEMENT OF PURPOSE
                               RS08582
                                   
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 umder him who have worker's
compensation insurance could be subject to suit by an employee of the contractor or subcontractor if
negligence occurs. Also a person who could 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


CONTACT: Senator James Risch 332-1303








STATEMENT OF PURPOSE/FISCAL NOTE  
                                                                S 1097