1.1 	A bill for an act
1.2 	relating to transportation; providing an alternative compensation and settlement 
1.3 	process for victims of the I-35W bridge collapse; changing the effective date of 
1.4 	an increase in individual damage caps for state tort claims; appropriating money;
1.5 	amending Minnesota Statutes 2006, section 3.736, subdivision 4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	ARTICLE 1
1.8 	STATE TORT CLAIMS

1.9 	Section 1. Minnesota Statutes 2006, section 3.736, subdivision 4, is amended to read:
1.10 		Subd. 4.Limits. The total liability of the state and its employees acting within the 
1.11 	scope of their employment on any tort claim shall not exceed:
1.12 	(a) $300,000 when the claim is one for death by wrongful act or omission and 
1.13 	$300,000 to any claimant in any other case, for claims arising before January August
1.14 	1, 2008 2007;
1.15 	(b) $400,000 when the claim is one for death by wrongful act or omission and 
1.16 	$400,000 to any claimant in any other case, for claims arising on or after January August
1.17 	1, 2008 2007, and before July 1, 2009;
1.18 	(c) $500,000 when the claim is one for death by wrongful act or omission and 
1.19 	$500,000 to any claimant in any other case, for claims arising on or after July 1, 2009;
1.20 	(d) $750,000 for any number of claims arising out of a single occurrence, for claims 
1.21 	arising on or after January 1, 1998, and before January 1, 2000; 
1.22 	(e) $1,000,000 for any number of claims arising out of a single occurrence, for 
1.23 	claims arising on or after January 1, 2000, and before January 1, 2008; 
2.1 	(f) $1,200,000 for any number of claims arising out of a single occurrence, for 
2.2 	claims arising on or after January 1, 2008, and before July 1, 2009; or
2.3 	(g) $1,500,000 for any number of claims arising out of a single occurrence, for 
2.4 	claims arising on or after July 1, 2009.
2.5 	If the amount awarded to or settled upon multiple claimants exceeds the applicable 
2.6 	limit under clause  (d), (e), (f), or  (g), any party may apply to the district court to apportion 
2.7 	to each claimant a proper share of the amount available under the applicable limit under 
2.8 	clause  (d), (e), (f), or  (g). The share apportioned to each claimant shall be in the proportion 
2.9 	that the ratio of the award or settlement bears to the aggregate awards and settlements for 
2.10 	all claims arising out of the occurrence.
2.11 	The limitation imposed by this subdivision on individual claimants includes damages 
2.12 	claimed for loss of services or loss of support arising out of the same tort.

2.13 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2007.

2.14 	ARTICLE 2
2.15 	I-35W BRIDGE COLLAPSE

2.16 	Section 1. COMPENSATION FOR VICTIMS OF I-35W BRIDGE COLLAPSE.
 2.17 		Subdivision 1.Findings. (a) The legislature finds that the collapse of the Interstate 
2.18 	Highway 35W bridge over the Mississippi River in Minneapolis on August 1, 2007, 
2.19 	was a catastrophe of historic proportions. The bridge was the third-busiest in the state, 
2.20 	carrying over 140,000 cars per day. Its collapse killed 13 people and injured more than 
2.21 	100. No other state-owned structure has ever fallen with such devastating physical and 
2.22 	psychological impact on so many. 
2.23 	(b) The methods used by the legislature to compensate victims of natural disasters 
2.24 	are not appropriate for this catastrophe. In this catastrophe, leaving victims the sole option 
2.25 	of pursuing relief for their injuries through the courts is not in the best interests of either 
2.26 	the state or the victims. Legal claims of this nature are too complex, uncertain, time 
2.27 	consuming, and expensive for all parties involved. In addition, the current aggregate tort 
2.28 	claims limit contained in Minnesota Statutes, section 3.736, subdivision 4, paragraph (e), 
2.29 	unduly limits the potential relief available to victims due to the unique circumstances of 
2.30 	the bridge collapse.
2.31 	(c) The establishment of an alternative compensation process for victims of the 
2.32 	bridge collapse furthers the public interest by providing a remedy for victims while 
2.33 	avoiding the uncertainty of potentially complex and protracted litigation to resolve the 
2.34 	issue of the liability of the state and its employees for damages incurred by victims.
3.1 		Subd. 2.Definitions. For purposes of this article:
3.2 	(a) "Damages" means damages that are compensable under state tort law and 
3.3 	damages for wrongful death that are compensable under Minnesota Statutes, section 
3.4 	573.02. Damages do not include punitive damages or attorney fees.
3.5 	(b) "Emergency relief fund" means the I-35W bridge emergency relief fund created 
3.6 	by the state on November 30, 2007.
3.7 	(c) "Municipality" has the meaning given in Minnesota Statutes, section 466.01.
3.8 	(d) "Panel" means the special master panel created under subdivision 3.
3.9 	(e) "State" has the meaning given in Minnesota Statutes, section 3.732.
3.10 	(f) "Victim" means a natural person who was present on the I-35W bridge at the time 
3.11 	of the collapse. Victim includes the parent or legal guardian of a victim who is under 
3.12 	18 years of age; a legally appointed representative of a victim; or the surviving spouse 
3.13 	or next of kin of a victim who would be entitled to bring an action under Minnesota 
3.14 	Statutes, section 573.02.
3.15 		Subd. 3.Special master panel; administration. (a) The chief justice of the 
3.16 	Supreme Court shall establish a special master panel to consider claims; make offers of 
3.17 	settlement; and enter into settlement agreements with victims on behalf of the state. The 
3.18 	panel must consist of three attorneys, at least one of whom must be a retired judge of the 
3.19 	appellate or district courts of this state. Nonjudicial members of the panel must have 
3.20 	experience in legal issues involving the settlement of tort claims and the determination of 
3.21 	damages. The chief justice shall designate a member of the panel who is a retired judge 
3.22 	to serve as chair of the panel. The chief justice shall determine the pay and expenses 
3.23 	to be received by a member of the panel. 
3.24 	(b) Within the limits of available appropriations, the state court administrator, 
3.25 	in consultation with the panel, shall hire employees necessary to assist the panel in 
3.26 	performing its duties under this section. Employees are in the unclassified state civil 
3.27 	service. The panel may also use current state employees or consultants who are under a 
3.28 	contract with the state to assist the panel in processing claims under this section.
3.29 	(c) The panel may adopt procedures, rules, and forms for considering claims; 
3.30 	making offers of settlement; and entering into settlement agreements. These procedures, 
3.31 	rules, and forms are exempt from Minnesota Statutes, chapter 14, including Minnesota 
3.32 	Statutes, section 14.386.
3.33 	(d) The state court administrator shall forward documentation of salaries, expenses, 
3.34 	and administrative costs under this subdivision to the commissioner of finance for 
3.35 	payment of those amounts.
4.1 	(e) Members of the panel and employees and contractors acting under the direction 
4.2 	of the panel are absolutely immune from civil liability for any act or omission occurring 
4.3 	within the scope of the performance of their duties under this section.
4.4 		Subd. 4.Claims; consideration, settlement, and payment. (a) The panel shall 
4.5 	consider claims; make offers of settlement; and enter into settlement agreements with 
4.6 	victims as provided in this section. In order to be eligible to receive an offer of settlement 
4.7 	or enter into a settlement agreement under this section, a victim must file a claim with the 
4.8 	panel within six months after the effective date of this section. Any offer of settlement 
4.9 	must be made by the panel within one year after the effective date of this section.
4.10 	(b)  The amount of an offer of settlement under this section must be based on the 
4.11 	total damages incurred by the victim, less:
4.12 	(1) a collateral source reduction calculated in the manner provided for in Minnesota 
4.13 	Statutes, section 548.36; 
4.14 	(2) any payment made to the victim from the emergency relief fund; and
4.15 	(3) any payments made or required to be made to the victim by a third-party 
4.16 	tortfeasor under the terms of an existing settlement or other agreement with the victim 
4.17 	or a final judgment in favor of the victim concerning claims of the victim that relate to, 
4.18 	involve, or arise out of the bridge collapse.
4.19 	The amount of an offer of settlement or payment required by a settlement agreement 
4.20 	must not exceed $400,000 per victim. Notwithstanding Minnesota Statutes, section 3.736, 
4.21 	subdivision 4, clause (e), there is no limit on the total amount of payments made to all 
4.22 	victims under this section, subject to the availability of appropriations for this purpose.
4.23 	(c) A victim who accepts an offer of settlement from the panel must agree in writing 
4.24 	and in a form developed by the panel to release the state and every municipality of this 
4.25 	state and their employees from liability for damages arising from the bridge collapse and 
4.26 	to cooperate with the state in pursuing claims the state may have against any other party. 
4.27 	The release must also provide that the victim will indemnify the state, a municipality, and 
4.28 	their employees for any claim of contribution or indemnity, or both, made by other persons 
4.29 	against the state, a municipality, and their employees and the release will satisfy any 
4.30 	judgment obtained by the victim against the state in an action against other persons to the 
4.31 	extent of the release, if the claim or judgment relates in any way to a claim of the victim 
4.32 	arising from the bridge collapse. The release must provide for the subrogation interest of 
4.33 	the state under section 2, subdivision 5. 
4.34 	(d) The panel shall promptly forward to the commissioner of finance documentation 
4.35 	of each settlement agreement that has been entered into under this section. The 
5.1 	commissioner of finance shall pay the agreed amount within 30 days after receiving the 
5.2 	documentation.
5.3 		Subd. 5.Effect and finality of offers and settlement agreements. (a) An offer 
5.4 	of settlement made to a victim under this section is considered for all purposes to be an 
5.5 	offer to the victim to settle a legal claim.
5.6 	(b) A determination by the panel regarding an offer of settlement or settlement 
5.7 	agreement is final and not subject to judicial review.
5.8 		Subd. 6.Data. Data on individuals collected or created because a victim files 
5.9 	a claim or accepts or rejects an offer of settlement under this section are private data on 
5.10 	individuals as defined in Minnesota Statutes, section 13.02, subdivision 12, except for the:
5.11 	(1) name of the victim; and 
5.12 	(2) terms of any written settlement agreement between the victim and the state.
5.13 		Subd. 7.Election to proceed in district court. (a) A victim may elect not to file 
5.14 	a claim with the panel or not to accept an offer of settlement from the panel. A victim 
5.15 	who elects not to file a claim with the panel or not to accept an offer of settlement has 
5.16 	not waived any legal rights that may be asserted against the state or a municipality and 
5.17 	may proceed with a claim in district court.
5.18 	(b) If a victim elects not to accept an offer of settlement, the state or a municipality 
5.19 	may not use any data provided by the victim to the panel in a subsequent legal proceeding. 
5.20 	The state or a municipality may obtain information, including data provided to the panel, 
5.21 	through discovery or other legal processes.

5.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.23 	Sec. 2. EFFECT OF SPECIAL COMPENSATION PROCESS; RELATIONSHIP 
5.24 	TO OTHER LAW.
 5.25 		Subdivision 1.No state liability or duty created. The establishment of the special 
5.26 	compensation process under section 1 and the emergency relief fund, and an offer of 
5.27 	settlement or a settlement agreement is not an admission of liability by the state or a 
5.28 	municipality and their employees and does not establish a duty of the state, a municipality, 
5.29 	or their employees to compensate victims. The creation and funding of the compensation 
5.30 	process under this act or an offer of settlement or settlement agreement is not admissible 
5.31 	in a judicial or administrative proceeding to establish liability or a legal duty.
5.32 		Subd. 2.Payments as additional compensation. Payments made under section 1 
5.33 	or from the emergency relief fund are intended to supplement and be in addition to any 
5.34 	payments under section 1 or from the emergency relief fund required to be made by a 
5.35 	third party under law or contract. Payments are not a collateral source for purposes of 
6.1 	Minnesota Statutes, section 62A.096 or 548.36 or other law providing for the reduction of 
6.2 	a damage award or the amount of benefits recoverable by a victim from a third party.
6.3 		Subd. 3.Payments from other sources. Notwithstanding any statutory or common 
6.4 	law or agreement to the contrary, a person required to make payments, including 
6.5 	future payments, to a victim may not eliminate or reduce those payments as a result of 
6.6 	compensation paid to the victim under section 1 or from the emergency relief fund or as a 
6.7 	result of the victim's release of claims against the state, a municipality, or their employees 
6.8 	under section 1.
6.9 		Subd. 4.No third-party subrogation or recovery. Notwithstanding any statutory 
6.10 	or common law to the contrary, no person who has paid benefits or compensation to or 
6.11 	on behalf of a victim has any right of recovery, through subrogation or otherwise, with 
6.12 	respect to making a claim or recovering from payments made under section 1 or from 
6.13 	the emergency relief fund.
6.14 		Subd. 5.Third-party reimbursement of state; right of subrogation. (a) 
6.15 	Notwithstanding any statutory or common law to the contrary, the state is entitled to 
6.16 	recover from any third party, including an agent, contractor, or vendor retained by the 
6.17 	state, for payments made from the emergency relief fund or under section 1 to the extent 
6.18 	the third party caused or contributed to the bridge collapse.
6.19 	(b) Notwithstanding any statutory or common law to the contrary, the state is 
6.20 	subrogated to all potential claims against third-party tortfeasors of a victim receiving 
6.21 	payment from the emergency relief fund or under section 1 to the extent the claims relate 
6.22 	to, involve, or arise out of the bridge collapse. The subrogation right of the state under this 
6.23 	subdivision is limited to the amount paid to the victim from the emergency relief fund 
6.24 	and under section 1. The rights of the state under this subdivision are in addition to other 
6.25 	remedies, claims, and rights relating to the bridge collapse that the state may have against 
6.26 	other persons for the recovery of money.
6.27 		Subd. 6.Amounts not considered for purposes of limit on government tort 
6.28 	liability. Payments made to victims under section 1 or from the emergency relief fund 
6.29 	are not to be considered in calculating the limit on tort claims in civil actions against the 
6.30 	state arising out of the bridge collapse for purposes of Minnesota Statutes, section 3.736, 
6.31 	subdivision 4, clause (e), or a municipality arising out of the bridge collapse for purposes 
6.32 	of Minnesota Statutes, section 466.04, subdivision 1, clause (5).

6.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.34 	Sec. 3. APPROPRIATIONS.
 7.1 	(a) $....... is appropriated from the ....... fund to the commissioner of finance to make 
7.2 	payments under settlement agreements entered into by the panel under section 1. This 
7.3 	appropriation is available until all claims eligible for payment under section 1 have been 
7.4 	paid. The legislature intends to fully fund the settlement agreements. If it appears to the 
7.5 	commissioner of finance that this appropriation may be insufficient to pay all agreed upon 
7.6 	settlement amounts, the commissioner shall promptly report to the chairs of the senate 
7.7 	Committee on Finance and the house of representatives Committee on Ways and Means 
7.8 	the estimated amount of the insufficiency and the estimated date when the appropriation 
7.9 	will be exhausted. 
7.10 	(b) $....... is appropriated from the general fund to the commissioner of finance 
7.11 	to pay salaries, expenses, and administrative costs associated with making offers of 
7.12 	settlement and entering into settlement agreements under section 1. This appropriation 
7.13 	is available until June 30, 2009.

7.14 	EFFECTIVE DATE. This section is effective the day following final enactment.