2006 Legislation
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HOUSE BILL NO. 648 – Workers comp, employment defined

HOUSE BILL NO. 648

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Bill Status



H0648aaS....................................by COMMERCE AND HUMAN RESOURCES
WORKER'S COMPENSATION - Amends existing law relating to worker's
compensation to provide that persons performing service in the course of
the business of an employer are covered under private employment
provisions; to revise the definition for "employment"; and to remove an
exemption from coverage relating to employment not carried on by the
employer for the sake of pecuniary gain.
                                                                        
02/10    House intro - 1st rdg - to printing
02/13    Rpt prt - to Com/HuRes
02/14    Rpt out - rec d/p - to 2nd rdg
02/15    2nd rdg - to 3rd rdg
02/21    3rd rdg - PASSED - 67-0-3
      AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali(Sali), Sayler, Schaefer, Shepherd(2), Shepherd(8),
      Shirley, Skippen, Smith(30), Smith(24), Smylie, Stevenson, Trail,
      Wills, Wood
      NAYS -- None
      Absent and excused -- Barrett, Snodgrass, Mr. Speaker
    Floor Sponsor - Bradford
    Title apvd - to Senate
02/22    Senate intro - 1st rdg - to Com/HuRes
03/08    Rpt out - to 14th Ord
03/14    Rpt out amen - to 1st rdg as amen
03/15    1st rdg - to 2nd rdg as amen
03/16    2nd rdg - to 3rd rdg as amen
03/20    3rd rdg as amen - PASSED - 34-0-1
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Marley
    Floor Sponsor - Broadsword
    Title apvd - to House
03/21    House concurred in Senate amens - to engros
03/22    Rpt engros - 1st rdg - to 2nd rdg as amen
03/23    2nd rdg - to 3rd rdg as amen
03/24    3rd rdg as amen - PASSED - 68-1-1
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
      Cannon, Chadderdon, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Mr. Speaker
      NAYS -- Wood
      Absent and excused -- Clark
    Floor Sponsor - Bradford
    Title apvd - to enrol
03/27    Rpt enrol - Sp signed
03/28    Pres signed
03/29    To Governor
03/30    Governor signed
         Session Law Chapter 231
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 648
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO WORKER'S COMPENSATION; AMENDING SECTION  72-204,  IDAHO  CODE,  TO
  3        PROVIDE  THAT  PERSONS PERFORMING SERVICE IN THE COURSE OF THE BUSINESS OF
  4        AN EMPLOYER ARE COVERED UNDER PRIVATE EMPLOYMENT PROVISIONS, TO REVISE THE
  5        DEFINITION FOR "EMPLOYMENT" AND TO MAKE TECHNICAL CORRECTIONS; AND  AMEND-
  6        ING  SECTION  72-212,  IDAHO  CODE,  TO  REMOVE AN EXEMPTION FROM COVERAGE
  7        RELATING TO EMPLOYMENT NOT CARRIED ON BY THE  EMPLOYER  FOR  THE  SAKE  OF
  8        PECUNIARY GAIN.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section  72-204, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        72-204.  PRIVATE EMPLOYMENT -- COVERAGE. The  following  shall  constitute
 13    employees  in private employment and their employers subject to the provisions
 14    of this law:
 15        (1)  A person performing service in the course  of  the  trade,  business,
 16    profession or occupation of an employer.
 17        (2)  A person, including a minor, whether lawfully or unlawfully employed,
 18    in  the  service  of an employer under any contract of hire or apprenticeship,
 19    express or implied, and all helpers and assistants of employees  whether  paid
 20    by  the  employer  or employee, if employed with the knowledge, actual or con-
 21    structive, of the employer.
 22        (3)  An officer of a corporation.
 23        (4)  "Employment," in the case of private employers,  includes  employment
 24    only  in  a  that  trade, business, profession or occupation which is normally
 25    carried on by the employer for the sake of pecuniary gain  and  also  includes
 26    any of the pursuits specified in section 72-212, Idaho Code, when the employer
 27    shall  have elected to come under the law as provided in section 72-213, Idaho
 28    Code.
                                                                        
 29        SECTION 2.  That Section 72-212, Idaho Code, be, and the  same  is  hereby
 30    amended to read as follows:
                                                                        
 31        72-212.  EXEMPTIONS  FROM  COVERAGE.  None  of  the provisions of this law
 32    shall apply to the following employments unless coverage thereof is elected as
 33    provided in section 72-213, Idaho Code.
 34        (1)  Household domestic service.
 35        (2)  Casual employment.
 36        (3)  Employment of outworkers.
 37        (4)  Employment of members of an employer's family dwelling in his  house-
 38    hold.
 39        (5)  Employment  of  members  of  an employer's family not dwelling in his
 40    household if the employer is the owner of a sole proprietorship, provided  the
 41    family member has filed with the commission a written declaration of his elec-
                                                                        
                                           2
                                                                        
  1    tion for exemption from coverage. For the purposes of this subsection, "member
  2    of  an  employer's  family"  means a natural person or the spouse of a natural
  3    person who is related to the employer by blood, adoption  or  marriage  within
  4    the  first  degree  of consanguinity or a grandchild or the spouse of a grand-
  5    child.
  6        (6)  Employment which is not carried on by the employer for  the  sake  of
  7    pecuniary gain.
  8        (7)  Employment  as  the  owner  of a sole proprietorship; employment of a
  9    working member of a partnership or a limited liability company; employment  of
 10    an  officer  of a corporation who at all times during the period involved owns
 11    not less than ten percent (10%) of all of the issued  and  outstanding  voting
 12    stock  of  the  corporation  and,  if the corporation has directors, is also a
 13    director thereof.
 14        (87)  Employment for which a rule of liability  for  injury,  occupational
 15    disease, or death is provided by the laws of the United States.
 16        (98)  Employment  as  a  pilot of an aircraft, while actually operating an
 17    aircraft for the purpose of applying fertilizers or pesticides to agricultural
 18    crops, shall be exempt from the provisions of the worker's  compensation  law,
 19    provided that:
 20        (a)  The industrial commission has issued to the agent submitting the pol-
 21        icy,  written approval of a policy of insurance that will provide benefits
 22        in an amount of not less  than:  twenty-five  thousand  dollars  ($25,000)
 23        accidental death and dismemberment, ten thousand dollars ($10,000) medical
 24        expense  payments,  and  five  hundred dollars ($500) per month disability
 25        income for a minimum of forty-eight (48) months; and
 26        (b)  Once the policy has been approved by the industrial commission, proof
 27        of coverage for the specified pilot has been  filed  with  the  commission
 28        prior to the pilot actually operating an aircraft.
 29    Provided  however,  the  agent issuing the policy shall obtain approval of the
 30    policy of insurance, and proof of coverage for each pilot  insured  under  the
 31    policy  shall  be filed with the commission, each calendar year. The exemption
 32    shall be effective on the date the commission receives proof of  coverage  for
 33    the specified pilot, but no earlier than the date written approval of the pol-
 34    icy was issued by the commission.
 35        (109)  Associate  real  estate  brokers  and real estate salesmen. Service
 36    performed by an individual for a real  estate  broker  as  an  associate  real
 37    estate  broker  or as a real estate salesman, if all such service performed by
 38    such individual for such person is performed for remuneration solely by way of
 39    commission.
 40        (110) Volunteer ski patrollers.
 41        (121) Officials of  athletic  contests  involving  secondary  schools,  as
 42    defined in section 33-119, Idaho Code.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                                                     Moved by    Broadsword          
                                                                        
                                                     Seconded by Goedde              
                                                                        
                                                                        
                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 648
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the printed bill, in line 24, delete "normally".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                        HOUSE BILL NO. 648, As Amended in the Senate
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO WORKER'S COMPENSATION; AMENDING SECTION  72-204,  IDAHO  CODE,  TO
  3        PROVIDE  THAT  PERSONS PERFORMING SERVICE IN THE COURSE OF THE BUSINESS OF
  4        AN EMPLOYER ARE COVERED UNDER PRIVATE EMPLOYMENT PROVISIONS, TO REVISE THE
  5        DEFINITION FOR "EMPLOYMENT" AND TO MAKE TECHNICAL CORRECTIONS; AND  AMEND-
  6        ING  SECTION  72-212,  IDAHO  CODE,  TO  REMOVE AN EXEMPTION FROM COVERAGE
  7        RELATING TO EMPLOYMENT NOT CARRIED ON BY THE  EMPLOYER  FOR  THE  SAKE  OF
  8        PECUNIARY GAIN.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section  72-204, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        72-204.  PRIVATE EMPLOYMENT -- COVERAGE. The  following  shall  constitute
 13    employees  in private employment and their employers subject to the provisions
 14    of this law:
 15        (1)  A person performing service in the course  of  the  trade,  business,
 16    profession or occupation of an employer.
 17        (2)  A person, including a minor, whether lawfully or unlawfully employed,
 18    in  the  service  of an employer under any contract of hire or apprenticeship,
 19    express or implied, and all helpers and assistants of employees  whether  paid
 20    by  the  employer  or employee, if employed with the knowledge, actual or con-
 21    structive, of the employer.
 22        (3)  An officer of a corporation.
 23        (4)  "Employment," in the case of private employers,  includes  employment
 24    only  in  a that trade, business, profession or occupation which is carried on
 25    by the employer for the sake of pecuniary gain and also includes  any  of  the
 26    pursuits specified in section 72-212, Idaho Code, when the employer shall have
 27    elected to come under the law as provided in section 72-213, Idaho Code.
                                                                        
 28        SECTION  2.  That  Section  72-212, Idaho Code, be, and the same is hereby
 29    amended to read as follows:
                                                                        
 30        72-212.  EXEMPTIONS FROM COVERAGE. None of  the  provisions  of  this  law
 31    shall apply to the following employments unless coverage thereof is elected as
 32    provided in section 72-213, Idaho Code.
 33        (1)  Household domestic service.
 34        (2)  Casual employment.
 35        (3)  Employment of outworkers.
 36        (4)  Employment  of members of an employer's family dwelling in his house-
 37    hold.
 38        (5)  Employment of members of an employer's family  not  dwelling  in  his
 39    household  if the employer is the owner of a sole proprietorship, provided the
 40    family member has filed with the commission a written declaration of his elec-
 41    tion for exemption from coverage. For the purposes of this subsection, "member
                                                                        
                                           2
                                                                        
  1    of an employer's family" means a natural person or the  spouse  of  a  natural
  2    person  who  is  related to the employer by blood, adoption or marriage within
  3    the first degree of consanguinity or a grandchild or the spouse  of  a  grand-
  4    child.
  5        (6)  Employment  which  is  not carried on by the employer for the sake of
  6    pecuniary gain.
  7        (7)  Employment as the owner of a sole  proprietorship;  employment  of  a
  8    working  member of a partnership or a limited liability company; employment of
  9    an officer of a corporation who at all times during the period  involved  owns
 10    not  less  than  ten percent (10%) of all of the issued and outstanding voting
 11    stock of the corporation and, if the corporation  has  directors,  is  also  a
 12    director thereof.
 13        (87)  Employment  for  which  a rule of liability for injury, occupational
 14    disease, or death is provided by the laws of the United States.
 15        (98)  Employment as a pilot of an aircraft, while  actually  operating  an
 16    aircraft for the purpose of applying fertilizers or pesticides to agricultural
 17    crops,  shall  be exempt from the provisions of the worker's compensation law,
 18    provided that:
 19        (a)  The industrial commission has issued to the agent submitting the pol-
 20        icy, written approval of a policy of insurance that will provide  benefits
 21        in  an  amount  of  not  less than: twenty-five thousand dollars ($25,000)
 22        accidental death and dismemberment, ten thousand dollars ($10,000) medical
 23        expense payments, and five hundred dollars  ($500)  per  month  disability
 24        income for a minimum of forty-eight (48) months; and
 25        (b)  Once the policy has been approved by the industrial commission, proof
 26        of  coverage  for  the  specified pilot has been filed with the commission
 27        prior to the pilot actually operating an aircraft.
 28    Provided however, the agent issuing the policy shall obtain  approval  of  the
 29    policy  of  insurance,  and proof of coverage for each pilot insured under the
 30    policy shall be filed with the commission, each calendar year.  The  exemption
 31    shall  be  effective on the date the commission receives proof of coverage for
 32    the specified pilot, but no earlier than the date written approval of the pol-
 33    icy was issued by the commission.
 34        (109)  Associate real estate brokers and  real  estate  salesmen.  Service
 35    performed  by  an  individual  for  a  real estate broker as an associate real
 36    estate broker or as a real estate salesman, if all such service  performed  by
 37    such individual for such person is performed for remuneration solely by way of
 38    commission.
 39        (110) Volunteer ski patrollers.
 40        (121) Officials  of  athletic  contests  involving  secondary  schools, as
 41    defined in section 33-119, Idaho Code.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS 15347

     Eliminates the "Not for Pecuniary Gain" exemption from the
Workers' Compensation Law.  Idaho is the only state that has
retained this broad exemption in its workers' compensation law. 
The Idaho Supreme Court in State v. Bible Missionary Church,
Inc., broadened the definition of "pecuniary gain" in a way that
extends this exemption to all businesses with employees that do
not engage in commercial transactions where money is received in
direct payment for the goods or services provided to the public. 
This new court interpretation will result in many more Idaho
workers being without workers' compensation coverage. 
Elimination of this exemption will ensure that these Idaho
workers and their families will continue to be protected by the
Workers' Compensation Law.  It will also reinforce the continuing
requirement that all covered private employment must still be
conducted in the service of the normal trade, business,
profession or occupation of the employer.


                          FISCAL NOTE

     These amendments will have no fiscal impact on the General
Fund or Dedicated Funds.



CONTACT
Name:     Mindy Montgomery
Agency:   Industrial Commission
Phone:    334-6059

STATEMENT OF PURPOSE/FISCAL NOTE                              H 648