HF 103

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:33am

A bill for an act
relating to state tort claims; removing the single occurrence liability cap;
conforming cross references; amending Minnesota Statutes 2008, sections 3.736,
subdivisions 4, as amended, 7; 3.7393, subdivision 11; 3.7394, subdivision 6.

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

Section 1. new text begin FINDINGS.
new text end

new text begin The legislature finds that the state and municipal tort liability limitations contained
in Minnesota Statutes, sections 3.736 and 466.04, are rationally related to the legitimate
government objective of ensuring fiscal stability to meet and carry out the manifold
responsibilities of government. The legislature finds that, unlike municipalities, the state
of Minnesota has the fiscal capacity and ability to absorb the cost of and pay for multiple
tort claims arising out of a single occurrence without a dollar limitation on that liability.
The ability of the state to respond to monetary judgments is quantitatively greater than that
of a municipality because of significant differences in the size of their respective budgets
and their tax base and taxing authority. A limitation on the total liability of municipalities
for multiple tort claims arising out of a single occurrence is necessary to protect the fiscal
stability and integrity of municipalities and to protect the taxpayers within municipalities
from the effect of unlimited tort liability exposure. The legislature retains and reaffirms
the public purpose served by the continuance of the limitation on liability for tort claims
arising out of a single occurrence applicable to municipalities under Minnesota Statutes,
section 466.04.
new text end

Sec. 2.

Minnesota Statutes 2008, section 3.736, subdivision 4, is amended to read:

Subd. 4.

Limits.

new text begin (a) new text end The total liability of the state and its employees acting within
the scope of their employment on any tort claim shall not exceed:

deleted text begin (a) deleted text end new text begin (1) new text end $300,000 when the claim is one for death by wrongful act or omission and
$300,000 to any claimant in any other case, for claims arising before August 1, 2007;

deleted text begin (b) deleted text end new text begin (2) new text end $400,000 when the claim is one for death by wrongful act or omission and
$400,000 to any claimant in any other case, for claims arising on or after August 1, 2007,
and before July 1, 2009;

deleted text begin (c) deleted text end new text begin (3) new text end $500,000 when the claim is one for death by wrongful act or omission and
$500,000 to any claimant in any other case, for claims arising on or after July 1, 2009;

deleted text begin (d) deleted text end new text begin (4) new text end $750,000 for any number of claims arising out of a single occurrence, for
claims arising on or after January 1, 1998, and before January 1, 2000;

deleted text begin (e) deleted text end new text begin (5) new text end $1,000,000 for any number of claims arising out of a single occurrence, for
claims arising on or after January 1, 2000, and before January 1, 2008; new text begin or
new text end

deleted text begin (f) deleted text end new text begin (6) new text end $1,200,000 for any number of claims arising out of a single occurrence, for
claims arising on or after January 1, 2008, and before deleted text begin July 1, 2009; or
deleted text end

deleted text begin (g) $1,500,000 for any number of claims arising out of a single occurrence, for
claims arising on or after deleted text end July 1, 2009.

new text begin (b) There is no limit on the total liability of the state and its employees acting within
the scope of their employment for any number of claims arising out of a single occurrence
for claims arising on or after July 1, 2009.
new text end

new text begin (c) new text end If the amount awarded to or settled upon multiple claimants exceeds the
applicable limit under deleted text begin clause (d), (e), (f), or (g) deleted text end new text begin paragraph (a), clause (4), (5), or (6) new text end ,
any party may apply to the district court to apportion to each claimant a proper share of
the amount available under the applicable limit deleted text begin under clause (d), (e), (f), or (g) deleted text end . The
share apportioned to each claimant shall be in the proportion that the ratio of the award
or settlement bears to the aggregate awards and settlements for all claims arising out
of the occurrence.

new text begin (d) new text end The limitation imposed by this subdivision on individual claimants includes
damages claimed for loss of services or loss of support arising out of the same tort.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 3.736, subdivision 7, is amended to read:

Subd. 7.

Payment.

A state agency, including an entity defined as part of the state
in section 3.732, subdivision 1, clause (1), incurring a tort claim judgment or settlement
obligation or whose employees acting within the scope of their employment incur the
obligation shall seek approval to make payment by submitting a written request to the
commissioner of finance. The request shall contain a description of the tort claim that
causes the request, specify the amount of the obligation and be accompanied by copies of
judgments, settlement agreements or other documentation relevant to the obligation for
which the agency seeks payment. Upon receipt of the request and review of the claim, the
commissioner of finance shall determine the proper appropriation from which to make
payment. If there is enough money in an appropriation or combination of appropriations
to the agency for its general operations and management to pay the claim without unduly
hindering the operation of the agency, the commissioner shall direct that payment be
made from that source new text begin , except that payment may not be made from the trunk highway
fund in excess of the amount specifically appropriated by the legislature for payment of
tort claims new text end . Claims relating to activities paid for by appropriations of dedicated receipts
shall be paid from those appropriations if practicable. On determining that an agency has
sufficient money in these appropriations to pay only part of a claim, the commissioner
shall pay the remainder of the claim from the money appropriated to the commissioner
for the purpose. On determining that the agency does not have enough money to pay any
part of the claim, the commissioner shall pay all of the claim from money appropriated
to the commissioner for the purpose. Payment shall be made only upon receipt of a
written release by the claimant in a form approved by the attorney general, or the person
designated as the university attorney, as the case may be.

No attachment or execution shall issue against the state.

Sec. 4.

Minnesota Statutes 2008, section 3.7393, subdivision 11, is amended to read:

Subd. 11.

Offers of settlement; limit on amount.

(a) The amount of an offer of
settlement or payment required by a settlement agreement must not exceed $400,000.
This limitation does not apply to a supplemental payment made under subdivision 12. An
offer of settlement must be accompanied by a notice to the survivor of the remainder of
the amount calculated under subdivision 10 that is not included in the offer because of the
limitation under this paragraph and the amount of the remainder for which a supplemental
payment may be awarded.

(b) Notwithstanding section 3.736, subdivision 4, new text begin paragraph (a), new text end clause deleted text begin (e) deleted text end new text begin (5) new text end , or
466.04, subdivision 1, paragraph (a), clause (5), the $1,000,000 limitation on state or
municipal liability for claims arising out of a single occurrence otherwise applicable to the
catastrophe does not apply to payments made to survivors under this section. The amount
that may be paid by the state is limited by the appropriations for this purpose.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 5.

Minnesota Statutes 2008, section 3.7394, subdivision 6, is amended to read:

Subd. 6.

Amounts not considered for purposes of limit on government tort
liability.

Payments made to survivors under section 3.7393 or from the emergency relief
fund are not to be considered in calculating the $1,000,000 limit on tort claims in civil
actions against the state arising out of the catastrophe for purposes of section 3.736,
subdivision 4, new text begin paragraph (a), new text end clause deleted text begin (e) deleted text end new text begin (5) new text end , or a municipality arising out of the catastrophe
for purposes of section 466.04, subdivision 1, clause (5).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 6. new text begin CONTINGENT REPEALER.
new text end

new text begin The amendments in sections 2 to 5 are repealed if a final nonappealable court
decision holds that the limit in Minnesota Statutes, section 466.04, subdivision 1,
paragraph (a), clause (7), is unconstitutional based on the amendments in this act.
new text end