1.1                          A bill for an act
  1.2             relating to civil actions; providing limits on certain 
  1.3             liability of certain nonprofit corporations providing 
  1.4             day training and habilitation services for adults with 
  1.5             mental retardation, daytime developmental achievement 
  1.6             center services for children with mental retardation 
  1.7             and related conditions, or providing group homes for 
  1.8             children; proposing coding for new law in Minnesota 
  1.9             Statutes, chapter 604A. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [604A.34] [LIMITED LIABILITY FOR CERTAIN 
  1.12  NONPROFIT CORPORATIONS.] 
  1.13     Subdivision 1.  [LIMIT ON AMOUNT OF LIABILITY.] Nonprofit 
  1.14  corporations governed by chapter 317A that:  
  1.15     (1) provide day training and habilitation services for 
  1.16  adults with mental retardation and related conditions under 
  1.17  sections 252.40 to 252.46 under a contract with a county or the 
  1.18  state; 
  1.19     (2) provide daytime developmental achievement services for 
  1.20  children with mental retardation and related conditions under a 
  1.21  contract with a county or the state; or 
  1.22     (3) are group homes serving children pursuant to Minnesota 
  1.23  Rules, parts 9545.1410 to 9545.1470, under a contract with a 
  1.24  county or the state; 
  1.25  are subject to the same liability limits provided for 
  1.26  municipalities under section 466.04 with respect to claims for 
  1.27  liability against the nonprofit corporation arising out of the 
  2.1   care of or provision of authorized services to those individuals 
  2.2   if the nonprofit corporation procures insurance against 
  2.3   liability for claims described under this section and the 
  2.4   insurance is in a minimum amount equal to the amounts specified 
  2.5   for municipalities under section 466.04. 
  2.6      Subd. 2.  [EFFECT OF EXCESS LIABILITY 
  2.7   INSURANCE.] Notwithstanding subdivision 1, if the nonprofit 
  2.8   corporation has insurance coverage in excess of the liability 
  2.9   limits under section 466.04, the procurement of that insurance 
  2.10  constitutes a waiver of those limits but only to the extent that 
  2.11  valid and collectible insurance exceeds those limits and covers 
  2.12  a claim.  The purchase of excess insurance has no other effect 
  2.13  on the liability of the nonprofit corporation. 
  2.14     Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
  2.15     Section 1 is effective January 1, 2004, and applies to 
  2.16  claims for professional liability arising from incidents 
  2.17  occurring on or after that date.