SENATE BILL NO. 432

INTRODUCED BY F. THOMAS

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING TIME LIMITATION PROVISIONS UNDER THE OCCUPATIONAL DISEASE ACT OF MONTANA TO ALLOW AN EMPLOYEE WHOSE LAST DAY OF EMPLOYMENT IN MONTANA OCCURRED PRIOR TO JULY 1, 1979, AND WHO DISCOVERED AN INJURY TO FILE A CLAIM FOR BENEFITS UNDER THE ACT; AMENDING SECTION 39-72-403, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND APPLICABILITY DATES."

WHEREAS, the Legislature has declared in 39-71-105, MCA, that for the purposes of interpreting and applying the Occupational Disease Act of Montana, the public policy objective of the Act is to provide, without regard to fault, wage supplement and medical benefits to workers suffering from work-related diseases and to ensure that claimants should be able to speedily obtain benefits with minimal reliance on attorneys and the court; and

WHEREAS, certain work-related disease processes caused by toxic exposures in the workplace, such as asbestosis, have an extended latency period, often many years after initial exposure, that precludes discovery of the disease process for an extended time period; and

WHEREAS, workers last employed in the state of Montana prior to July 1, 1979, are barred by time from receiving occupational disease benefits for work-related latent occupational disease processes contracted in the course and scope of their employment; and

WHEREAS, the Montana Supreme Court, in Gidley v. W.R. Grace & Company, 221 M 36, 717 P.2d 21 (1986), ruled that based on an interpretation of occupational disease statutes in effect, a worker last employed prior to July 1, 1979, and whose occupational disease claim was barred by time was entitled to pursue a common law action against the worker's employer; and

WHEREAS, the ruling of the Montana Supreme Court in Gidley does not promote the public policy of the Occupational Disease Act of Montana to provide speedy access to benefits, but rather forces workers with work-related latent occupational disease processes to pursue civil claims relying heavily upon the assistance of attorneys and the court system; and

WHEREAS, allowing workers last employed prior to July 1, 1979, the opportunity to pursue claims for occupational disease benefits promotes the expressed public policy of the state by providing occupational disease benefits to workers through a no-fault system in a timely manner with minimal reliance on attorneys and the court system and will not impair the contractual relationship between the workers and their employers that was created by adoption of the Occupational Disease Act of Montana; and

WHEREAS, workers who contracted occupational diseases in the course and scope of their employment have a legitimate and reasonable expectation of receiving benefits.

THEREFORE, it is appropriate that the Legislature pass legislation authorizing workers to retroactively pursue claims for occupational disease benefits for latent occupational disease processes contracted in the course and scope of their employment and to clarify that, contrary to the decision in Gidley, occupational disease benefits are the workers' exclusive remedy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 39-72-403, MCA, is amended to read:

"39-72-403. Time when claims must be presented -- exception. (1) Except as provided in subsection (3), when a claimant seeks benefits under this chapter, the claimant's claims for benefits must be presented in writing to the employer, the employer's insurer, or the department within 1 year from the date the claimant knew or should have known that the claimant's condition resulted from an occupational disease. When a beneficiary seeks benefits under this chapter, claims for death benefits must be presented in writing to the employer, the employer's insurer, or the department within 1 year from the date the beneficiaries knew or should have known that the decedent's death was related to an occupational disease.

(2) Except as provided in subsection (3), the department may, upon a reasonable showing by the claimant or a decedent's beneficiaries that the claimant or the beneficiaries could not have known that the claimant's condition or the employee's death was related to an occupational disease, waive the claim time requirement up to an additional 2 years.

(3) (a) A claimant who was last employed prior to July 1, 1979, or a beneficiary of a decedent who was last employed prior to July 1, 1979, and who, within 3 years prior to [the effective date this act] first came to know or first should have come to know that the claimant's or decedent's condition resulted from an occupational disease may file a claim for benefits under this chapter with the department within 1 year of [the effective date of this act].

(b) A claimant who was last employed prior to July 1, 1979, or a beneficiary of a decedent who was last employed prior to July 1, 1979, and who, on or after [the effective date of this act], comes to know or should have come to know that the claimant's or decedent's condition resulted from an occupational disease may file a claim in writing with the department for benefits under this chapter within 1 year from the date the claimant or beneficiary knew or should have known that the claimant's or decedent's condition resulted from an occupational disease.

(4) The time requirement for filing a claim prescribed in subsection (3) may be extended by the department for up to an additional 2 years as provided by subsection (2)."

NEW SECTION. Section 2. Effective date -- applicability. [This act] is effective on passage and approval and applies to claims filed after [the effective date of this act].

NEW SECTION. Section 3. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to claims by workers who were employed prior to July 1, 1979.

- END -