1.1                          A bill for an act 
  1.2             relating to claims against governmental units; 
  1.3             increasing tort liability limits; amending Minnesota 
  1.4             Statutes 1996, sections 3.736, subdivision 4; and 
  1.5             466.04, subdivisions 1 and 3; proposing coding for new 
  1.6             law in Minnesota Statutes, chapter 6. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 3.736, 
  1.9   subdivision 4, is amended to read: 
  1.10     Subd. 4.  [LIMITS.] The total liability of the state and 
  1.11  its employees acting within the scope of their employment on any 
  1.12  tort claim shall not exceed: 
  1.13     (a) $200,000 $300,000 when the claim is one for death by 
  1.14  wrongful act or omission and $200,000 $300,000 to any claimant 
  1.15  in any other case; 
  1.16     (b) $600,000 $750,000 for any number of claims arising out 
  1.17  of a single occurrence, for claims arising on or after January 
  1.18  1, 1998, and before January 1, 2000; or 
  1.19     (c) $1,000,000 for any number of claims arising out of a 
  1.20  single occurrence, for claims arising on or after January 1, 
  1.21  2000. 
  1.22     If the amount awarded to or settled upon multiple claimants 
  1.23  exceeds $600,000 the applicable limit under clause (b) or (c), 
  1.24  any party may apply to the district court to apportion to each 
  1.25  claimant a proper share of the $600,000 amount available under 
  1.26  the applicable limit under clause (b) or (c).  The share 
  2.1   apportioned to each claimant shall be in the proportion that the 
  2.2   ratio of the award or settlement bears to the aggregate awards 
  2.3   and settlements for all claims arising out of the occurrence. 
  2.4      The limitation imposed by this subdivision on individual 
  2.5   claimants includes damages claimed for loss of services or loss 
  2.6   of support arising out of the same tort. 
  2.7      Sec. 2.  [6.77] [LOCAL GOVERNMENT EXPENDITURES FOR LEGAL 
  2.8   COSTS.] 
  2.9      (a) On or before January 1, 1998, and each year thereafter, 
  2.10  the state auditor shall collect from all counties, cities of the 
  2.11  first, second, and third class, and school districts with 
  2.12  enrollment exceeding 100 students, information as to expenditure 
  2.13  of public funds for legal services incurred to defend the entity 
  2.14  from lawsuits and amounts paid in voluntary settlements or 
  2.15  judgments in any lawsuit.  The data must include costs incurred 
  2.16  for any fees paid as retainers for outside counsel.  Fees paid 
  2.17  for attorneys who perform work on criminal or prosecutorial 
  2.18  matters must be reported.  
  2.19     (b) The state auditor shall make and file, annually, in the 
  2.20  state auditor's office a summary report of the information 
  2.21  collected.  Copies of the report may be made and distributed to 
  2.22  interested persons and governmental units. 
  2.23     Sec. 3.  Minnesota Statutes 1996, section 466.04, 
  2.24  subdivision 1, is amended to read: 
  2.25     Subdivision 1.  [LIMITS; PUNITIVE DAMAGES.] (a) Liability 
  2.26  of any municipality on any claim within the scope of sections 
  2.27  466.01 to 466.15 shall not exceed:  
  2.28     (1) $200,000 $300,000 when the claim is one for death by 
  2.29  wrongful act or omission and $200,000 $300,000 to any claimant 
  2.30  in any other case; 
  2.31     (2) $600,000 $750,000 for any number of claims arising out 
  2.32  of a single occurrence, for claims arising on or after January 
  2.33  1, 1998, and before January 1, 2000; or 
  2.34     (3) $1,000,000 for any number of claims arising out of a 
  2.35  single occurrence, for claims arising on or after January 1, 
  2.36  2000; or 
  3.1      (4) twice the limits provided in clauses (1) and (2) to (3) 
  3.2   when the claim arises out of the release or threatened release 
  3.3   of a hazardous substance, whether the claim is brought under 
  3.4   sections 115B.01 to 115B.15 or under any other law.  
  3.5      (b) No award for damages on any such claim shall include 
  3.6   punitive damages. 
  3.7      Sec. 4.  Minnesota Statutes 1996, section 466.04, 
  3.8   subdivision 3, is amended to read: 
  3.9      Subd. 3.  [DISPOSITION OF MULTIPLE CLAIMS.] Where the 
  3.10  amount awarded to or settled upon multiple claimants exceeds 
  3.11  $600,000 the applicable limit under subdivision 1, paragraph 
  3.12  (a), clauses (2) to (4), any party may apply to any district 
  3.13  court to apportion to each claimant a proper share of the total 
  3.14  amount limited by subdivision 1.  The share apportioned each 
  3.15  claimant shall be in the proportion that the ratio of the award 
  3.16  or settlement made to each bears to the aggregate awards and 
  3.17  settlements for all claims arising out of the occurrence. 
  3.18     Sec. 5.  [EFFECTIVE DATE.] 
  3.19     Sections 1, 3, and 4 are effective January 1, 1998, for 
  3.20  claims arising from acts or omissions taking place on or after 
  3.21  that date.