1.1 	A bill for an act
1.2 	relating to civil actions; providing limits on certain
1.3 	liability of long-term care providers; proposing
1.4 	coding for new law in Minnesota Statutes, chapter 144A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [144A.80] DEFINITIONS.
1.7 		Subdivision 1.Application. The definitions in this
1.8 	section apply to section 144A.81.
1.9 		Subd. 2.Long-term care provider. "Long-term care
1.10 	provider" means:
1.11 	(1) a person licensed as a boarding care home under
1.12 	sections 144.56 and 144A.02 to 144A.08;
1.13 	(2) a person that furnishes continuing care within the
1.14 	meaning of section 80D.02, subdivision 2;
1.15 	(3) a person that provides home care services as defined in
1.16 	section 144A.43;
1.17 	(4) a hospice provider as defined by section 144A.75,
1.18 	subdivision 5;
1.19 	(5) a housing with services establishment as defined by
1.20 	section 144D.01, subdivision 4;
1.21 	(6) a nursing home as defined by section 144A.01,
1.22 	subdivision 5; or 
1.23 	(7) a person that owns or operates elderly assisted living
1.24 	facility property as defined in section 273.13, subdivision 25a.
1.25 		Subd. 3.Consumer. "Consumer" means a recipient of goods
2.1 	or services from a long-term care provider, or the recipient's
2.2 	agents, assigns, successors, heirs, or third-party beneficiaries.
2.3 		Subd. 4.Noneconomic damages. "Noneconomic damages"
2.4 	means subjective, nonpecuniary damages arising from death,
2.5 	disfigurement, pain, suffering, inconvenience, mental anguish,
2.6 	worry, emotional distress, loss of society or companionship,
2.7 	loss of consortium, bystander injury, physical impairment,
2.8 	injury to reputation, humiliation, embarrassment, loss of the
2.9 	enjoyment of life, hedonic damages, other nonpecuniary damages,
2.10 	and any similar kinds of damages, such as fear of loss, illness,
2.11 	or injury.  Noneconomic damages does not include economic
2.12 	damages.
2.13 		Subd. 5.Economic damages. "Economic damages" means
2.14 	objectively verifiable pecuniary damages arising from medical
2.15 	expenses and medical care, rehabilitation services, custodial
2.16 	care, disabilities, loss of earnings and earning capacity, loss
2.17 	of income, loss of use of property, cost of repair or
2.18 	replacement of property, cost of obtaining substitute domestic
2.19 	services, loss of employment, loss of business opportunities,
2.20 	burial costs, and other objectively verifiable monetary losses.

2.21 	Sec. 2. [144A.81] DAMAGE LIMITATION.
2.22 	(a) In an action by a consumer against a long-term care
2.23 	provider that arises out of the care or treatment of, or
2.24 	provision of other services to, the consumer, the amount of
2.25 	noneconomic damages awarded against the long-term provider may
2.26 	not exceed the dollar limits provided for total damages against
2.27 	a municipality under section 466.04.
2.28 	(b) The limitation on noneconomic damages in paragraph (a)
2.29 	does not apply unless the long-term care provider has insurance
2.30 	against liability for the type of claim described in paragraph
2.31 	(a), and the insurance has limits on total liability coverage
2.32 	for that type of claim that are at least as high as the dollar
2.33 	limits for total liability provided in section 466.04.
2.34 	(c) This section does not apply if the long-term care
2.35 	provider was grossly negligent or intended to cause the harm.

2.36 	Sec. 3. EFFECT OF EXCESS LIABILITY INSURANCE.
 3.1 	Notwithstanding section 144A.81, if the long-term care
3.2 	provider has insurance coverage in excess of the liability
3.3 	limits under section 466.04, the procurement of that insurance
3.4 	constitutes a waiver of those limits but only to the extent that
3.5 	valid and collectible insurance exceeds those limits and covers
3.6 	a claim.  The purchase of excess insurance has no other effect
3.7 	on the liability of the long-term care provider.

3.8 	Sec. 4. EFFECTIVE DATE; APPLICATION.
 3.9 	Sections 1 to 3 are effective the day following final
3.10 	enactment and apply to claims for liability arising from
3.11 	incidents occurring on or after that date.