1.1                          A bill for an act 
  1.2             relating to civil actions; providing limits on 
  1.3             liability of certain nonprofit corporations securing 
  1.4             or maintaining homes for dependent children or 
  1.5             providing day training and habilitation services for 
  1.6             adults with mental retardation and daytime 
  1.7             developmental achievement center services for children 
  1.8             with mental retardation and related conditions; 
  1.9             proposing coding for new law in Minnesota Statutes, 
  1.10            chapter 604A. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [604A.33] [LIMITED LIABILITY FOR CERTAIN 
  1.13  NONPROFIT CORPORATIONS.] 
  1.14     Subdivision 1.  [LIMIT ON AMOUNT OF LIABILITY.] Nonprofit 
  1.15  corporations organized and existing under, or existing under, 
  1.16  chapter 317A that provide day training and habilitation services 
  1.17  for adults with mental retardation and related conditions or 
  1.18  that provide daytime developmental achievement services for 
  1.19  children with mental retardation and related conditions and 
  1.20  nonprofit corporations formed for the purposes set forth in 
  1.21  section 317A.907, subdivision 1, are subject to the same 
  1.22  liability limits provided for state agencies under section 
  1.23  3.736, subdivision 4, with respect to claims against the 
  1.24  nonprofit corporation arising out of the care or treatment of 
  1.25  those individuals or the activities of those individuals while 
  1.26  in the care of the nonprofit corporation, if the nonprofit 
  1.27  corporation procures insurance against liability for claims 
  1.28  described under this section, which insurance is in an amount 
  2.1   equal to the amounts specified for the state under section 
  2.2   3.736, subdivision 4.  This section does not apply if the 
  2.3   conduct of the nonprofit corporation was intentional or grossly 
  2.4   negligent. 
  2.5      Subd. 2.  [EFFECT OF EXCESS LIABILITY INSURANCE.] 
  2.6   Notwithstanding subdivision 1, if the nonprofit corporation has 
  2.7   insurance coverage in excess of the liability limits under 
  2.8   section 3.736, subdivision 4, the procurement of that insurance 
  2.9   constitutes a waiver of those limits but only to the extent that 
  2.10  valid and collectible insurance exceeds those limits and covers 
  2.11  a claim.  The purchase of excess insurance has no other effect 
  2.12  on the liability of the nonprofit corporation. 
  2.13     Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
  2.14     Section 1 is effective July 1, 2001, and applies to claims 
  2.15  arising from incidents occurring on or after that date.