Senate File 287 - Introduced
SENATE FILE
BY WARNSTADT
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning the subrogation rights for a city under the
2 statewide fire and police retirement system.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2683XS 81
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PAG LIN
1 1 Section 1. Section 411.22, subsection 1, unnumbered
1 2 paragraph 1, Code 2005, is amended to read as follows:
1 3 If a member receives an injury or dies for which benefits
1 4 are payable under section 411.6, subsection 3, 5, 8, or 9, or
1 5 section 411.15, and if the injury or death is caused under
1 6 circumstances creating a legal liability for damages against a
1 7 third party other than the retirement system, the retirement
1 8 system is subrogated to the rights of the member or the
1 9 member's beneficiary entitled to receive a death benefit and
1 10 may maintain an action for damages against the third party for
1 11 lost earnings and lost earnings capacity. If the retirement
1 12 system recovers damages in the action, the court shall enter
1 13 judgment for distribution of the recovery as follows:
1 14 Sec. 2. Section 411.22, subsection 1, paragraph d, Code
1 15 2005, is amended to read as follows:
1 16 d. A sum sufficient to repay a city for payments made by
1 17 the city under section 411.15, if applicable.
1 18 d. e. Any balance remaining after the repayments provided
1 19 by paragraphs "a" through "c" "d" shall be paid to the injured
1 20 member, or the beneficiary under section 411.6, subsection 8
1 21 or 9, whichever is applicable.
1 22 Sec. 3. NEW SECTION. 411.22A SUBROGATION == CITY MEDICAL
1 23 PAYMENTS.
1 24 1. If a member receives an injury or dies for which
1 25 benefits are payable under section 411.15, and if the injury
1 26 or death is caused under circumstances creating a legal
1 27 liability for damages against a third party other than the
1 28 retirement system, the city that is required to make payments
1 29 under section 411.15 is subrogated to the rights of the member
1 30 or the member's beneficiary entitled to receive a death
1 31 benefit and may maintain an action for damages against the
1 32 third party for the payments required to be made under section
1 33 411.15. The city may authorize the retirement system to
1 34 collect the payments required to be made under section 411.15
1 35 on behalf of the city if the retirement system maintains an
2 1 action for damages as authorized by section 411.22.
2 2 2. If the city, after receiving written notice of the
2 3 third=party liability, declines in writing to maintain an
2 4 action against the third party or fails to maintain an action
2 5 within one hundred eighty days of receiving written notice of
2 6 the third=party liability, the member, the member's estate, or
2 7 the legal representative of the member or the member's estate,
2 8 may maintain an action for damages against the third party.
2 9 If such an action is commenced, the plaintiff member, estate,
2 10 or representative shall serve a copy of the original notice
2 11 upon the city not less than ten days before the trial of the
2 12 action, but a failure to serve the notice does not prejudice
2 13 the rights of the city, and the city shall be indemnified out
2 14 of the recovery of damages to the extent of payments made by
2 15 the city pursuant to section 411.15, with legal interest,
2 16 except that the plaintiff member's or estate's attorney fees
2 17 may be first allowed by the district court.
2 18 3. The city has a lien on the damage claim against the
2 19 third party and on any judgment on the damage claim for
2 20 payments made by the city pursuant to section 411.15 or
2 21 payments for which the city is liable. In order to continue
2 22 and preserve the lien, the city shall file a notice of the
2 23 lien within thirty days after receiving a copy of the original
2 24 notice in the office of the clerk of the district court in
2 25 which the action is filed.
2 26 EXPLANATION
2 27 This bill concerns the subrogation rights of a city to
2 28 recover payments of medical expenses by the city under the
2 29 statewide fire and police retirement system.
2 30 Code section 411.15 requires cities to pay the hospital,
2 31 nursing, and medical expenses of members of the retirement
2 32 system who are injured while in the performance of their
2 33 duties. Under current law, the retirement system is
2 34 subrogated to the rights of a member or beneficiary against a
2 35 third party who is legally liable for the injury or death of a
3 1 member that results in a payment of a retirement benefit by
3 2 the system or of medical payments under Code section 411.15.
3 3 This bill provides that a city, and not the retirement system,
3 4 is subrogated to the rights of the member for injuries that
3 5 result in the city making payments under Code section 411.15.
3 6 The bill provides that the city may authorize the retirement
3 7 system to collect these payments on behalf of the city and
3 8 provides that payment to the city shall be after the
3 9 retirement system is repaid but prior to distribution of any
3 10 recovery to the injured member or beneficiary.
3 11 LSB 2683XS 81
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