1.1                          A bill for an act 
  1.2             relating to civil actions; regulating the liability of 
  1.3             certain nonprofit corporations; proposing coding for 
  1.4             new law in Minnesota Statutes, chapter 604A. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [604A.34] [LIMITED LIABILITY FOR CERTAIN 
  1.7   NONPROFIT CORPORATIONS.] 
  1.8      Subdivision 1.  [LIMIT ON AMOUNT OF LIABILITY.] Nonprofit 
  1.9   corporations organized and existing under, or whose existence is 
  1.10  continued under, chapter 317A that are residential treatment 
  1.11  centers, group homes, or private child-placing agencies governed 
  1.12  by Minnesota Rules, parts 9545.0755 to 9545.0845, 9545.0905 to 
  1.13  9545.1125, or 9545.1410 to 9545.1470, are subject to the same 
  1.14  limit on liability and claims provided for municipalities under 
  1.15  section 466.04, with respect to claims arising out of the care 
  1.16  or treatment of those individuals or the activities of those 
  1.17  individuals while in the care of the nonprofit corporation, if 
  1.18  the nonprofit corporation procures insurance against liability 
  1.19  for claims described under this section, which insurance is in 
  1.20  an amount equal to the amounts specified for municipalities 
  1.21  under section 466.04.  This section does not apply if the 
  1.22  conduct of the nonprofit corporation was intentional. 
  1.23     Subd. 2.  [EFFECT OF EXCESS LIABILITY 
  1.24  INSURANCE.] Notwithstanding subdivision 1, if the nonprofit 
  1.25  corporation has insurance coverage in excess of the liability 
  2.1   limits under section 466.04, the procurement of that insurance 
  2.2   constitutes a waiver of those limits but only to the extent that 
  2.3   valid and collectible insurance exceeds those limits and covers 
  2.4   a claim.  The purchase of excess insurance has no other effect 
  2.5   on the liability of the nonprofit corporation. 
  2.6      Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
  2.7      Section 1 is effective the day following final enactment 
  2.8   and applies to claims for liability arising from incidents 
  2.9   occurring on or after that date.