H.F. 471 Section 1. NEW SECTION . 671A.1 Limitation on liability for 1 negligently hiring or failing to supervise an employee, agent, or 2 independent contractor convicted of a public offense. 3 1. A cause of action shall not be brought against a private 4 employer, general contractor, or premises owner solely for 5 negligently hiring or failing to adequately supervise an 6 employee, agent, or independent contractor, based on evidence 7 that the employee, agent, or independent contractor has been 8 convicted of a public offense as defined in section 701.2. 9 2. This chapter does not create a cause of action or expand 10 an existing cause of action. 11 3. This chapter does not apply to employment of prisoners 12 at prisons. 13 Sec. 2. NEW SECTION . 671A.2 Liability protection not 14 applicable. 15 1. This chapter does not preclude a cause of action for 16 negligent hiring by or the failure of a private employer, 17 general contractor, or premises owner to provide adequate 18 supervision of an employee, agent, or independent contractor, 19 based on evidence that the employee, agent, or independent 20 contractor has been convicted of a public offense as defined in 21 section 701.2, if all of the following criteria are met: 22 a. The private employer, general contractor, or premises 23 owner knew or should have known of the conviction. 24 b. The employee, agent, or independent contractor was 25 convicted of any of the following: 26 (1) A public offense that was committed while performing 27 duties substantially similar to those reasonably expected to 28 be performed in the employment or under the relationship or 29 contract, or under conditions substantially similar to those 30 reasonably expected to be encountered in the employment or 31 under the relationship or contract, taking into consideration 32 all of the following factors: 33 (a) The nature and seriousness of the public offense. 34 (b) The relationship of the public offense to the ability, 35 -1- LSB 2622YH (1) 88 asf/jh 1/ 4

H.F. 471 capacity, or fitness required to perform the duties and 1 discharge the responsibilities of the employment or the 2 relationship or contract. 3 (c) The extent and nature of the employee, agent, or 4 independent contractor’s past criminal activity. 5 (d) The age of the employee, agent, or independent 6 contractor when the public offense was committed. 7 (e) The amount of time that has elapsed since the employee, 8 agent, or independent contractor’s last criminal activity. 9 (f) The conduct and work activity of an employee, agent, or 10 independent contractor before and after the criminal activity. 11 (g) Evidence of the employee, agent, or independent 12 contractor’s rehabilitation or rehabilitative effort while 13 incarcerated or after release. 14 (h) Other evidence of the employee, agent, or independent 15 contractor’s fitness, including letters of recommendation from 16 any of the following: 17 (i) Prosecutors, law enforcement, or correctional officers 18 who prosecuted, arrested, or had custodial responsibility for 19 the employee, agent, or independent contractor. 20 (ii) The sheriff or chief of police in the community where 21 the employee, agent, or independent contractor resides. 22 (iii) Any other person in contact with the convicted 23 employee, agent, or independent contractor. 24 (2) A sexually violent offense as defined in section 229A.2. 25 (3) The offense of murder in the first degree under section 26 707.2. 27 (4) The offense of murder in the second degree under section 28 707.3. 29 (5) The offense of kidnapping in the first degree under 30 section 710.2. 31 (6) The offense of robbery in the first degree under section 32 711.2. 33 (7) An offense committed on certain real property for which 34 an enhanced penalty was received under section 124.401A or 35 -2- LSB 2622YH (1) 88 asf/jh 2/ 4

H.F. 471 124.401B. 1 (8) A felony offense where the employee, agent, or 2 independent contractor used or exhibited a dangerous weapon as 3 defined in section 702.7 during the commission of or during 4 immediate flight from the scene of the felony offense, or 5 where the employee, agent, or independent contractor used or 6 exhibited the dangerous weapon or was a party to the felony 7 offense and knew that a dangerous weapon would be used or 8 exhibited. 9 2. The protections provided to a private employer, general 10 contractor, or premises owner under this chapter do not apply 11 in a suit concerning the misuse of funds or property of a 12 person other than the employer, general contractor, or premises 13 owner, by an employee, agent, or independent contractor if, on 14 the date the employee, agent, or independent contractor was 15 hired, the employee, agent, or independent contractor had been 16 convicted of a public offense that included fraud or the misuse 17 of funds or property as an element of the public offense, and 18 it was foreseeable that the position for which the employee, 19 agent, or independent contractor was hired would involve 20 discharging a fiduciary responsibility in the management of 21 funds or property. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to the following causes of actions: 26 negligent hiring and failure to adequately supervise. The bill 27 does not expand or create any causes of action. 28 Under current law, the torts of negligent hiring and 29 supervision allow a person injured by an employee to sue the 30 employee’s employer even though the act was committed outside 31 the scope of the employment due to some fault resting with the 32 employer for hiring the employee, or failing to supervise the 33 employee. 34 The bill provides that the causes of action of negligent 35 -3- LSB 2622YH (1) 88 asf/jh 3/ 4

H.F. 471 hiring and negligent supervision shall not be brought against a 1 private employer, general contractor, or premises owner solely 2 based on evidence that the employee, agent, or independent 3 contractor has been convicted of a public offense. However, 4 the bill does not preclude causes of action for negligent 5 hiring or negligent supervision of an employee, agent, or 6 independent contractor, if two criteria are met. First, the 7 private employer, general contractor, or premises owner knew or 8 should have known of the conviction; and second, the employee, 9 agent, or independent contractor was convicted of a public 10 offense enumerated in the bill or a public offense that was 11 committed while performing duties substantially similar to 12 those reasonably expected to be performed in the employment, 13 or under the relationship or contract, or under conditions 14 substantially similar to those reasonably expected to be 15 encountered in the employment or the relationship or contract, 16 taking into consideration enumerated factors set forth in the 17 bill. 18 The bill provides that the protections provided to a private 19 employer, general contractor, or premises owner do not apply 20 in a suit concerning the misuse of funds or property of a 21 person other than the employer, general contractor, or premises 22 owner, by an employee, agent, or independent contractor if, on 23 the date the employee, agent, or independent contractor was 24 hired, the employee, agent, or independent contractor had been 25 convicted of a public offense that included fraud or the misuse 26 of funds or property as an element of the public offense, and 27 it was foreseeable that the position for which the employee, 28 agent, or independent contractor was hired would involve 29 discharging a fiduciary responsibility in the management of 30 funds or property. 31 The bill does not apply to the employment of prisoners at 32 prisons. 33 -4- LSB 2622YH (1) 88 asf/jh 4/ 4