<a id="pl.1.4"></a><var>1.4</var>fund; appropriating money;amending Minnesota Statutes 2006, section 13.635, <br/>
<a id="pl.1.5"></a><var>1.5</var>by adding a subdivision; proposing coding for new law as Minnesota Statutes, <br/>
<a id="pl.1.6"></a><var>1.6</var>chapter 8A.<br/>
<a id="pl.1.7"></a><var>1.7</var>May 5, 2008<br/>
<a id="pl.1.8"></a><var>1.8</var>The Honorable Margaret Anderson Kelliher<br/>
<a id="pl.1.9"></a><var>1.9</var>Speaker of the House of Representatives<br/>
<a id="pl.1.10"></a><var>1.10</var>The Honorable James P. Metzen<br/>
<a id="pl.1.11"></a><var>1.11</var>President of the Senate<br/>
<a id="pl.1.12"></a><var>1.12</var>We, the undersigned conferees for H. F. No. 2553 report that we have agreed upon <br/>
<a id="pl.1.13"></a><var>1.13</var>the items in dispute and recommend as follows:<br/>
<a id="pl.1.14"></a><var>1.14</var>That the Senate recede from its amendments and that H. F. No. 2553 be further <br/>
<a id="pl.1.15"></a><var>1.15</var>amended as follows:<br/>
<a id="pl.1.16"></a><var>1.16</var>Delete everything after the enacting clause and insert:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.17"></a><var>1.17</var>    "Section 1. Minnesota Statutes 2006, section 3.736, subdivision 4, is amended to read:<br/>
<a id="pl.1.18"></a><var>1.18</var>    Subd. 4. <b>Limits.</b> The total liability of the state and its employees acting within the <br/>
<a id="pl.1.19"></a><var>1.19</var>scope of their employment on any tort claim shall not exceed:<br/>
<a id="pl.1.20"></a><var>1.20</var>    (a) $300,000 when the claim is one for death by wrongful act or omission and <br/>
<a id="pl.1.21"></a><var>1.21</var>$300,000 to any claimant in any other case, for claims arising before January August <br/>
<a id="pl.1.22"></a><var>1.22</var>1, 2008 2007;<br/>
<a id="pl.1.23"></a><var>1.23</var>    (b) $400,000 when the claim is one for death by wrongful act or omission and <br/>
<a id="pl.1.24"></a><var>1.24</var>$400,000 to any claimant in any other case, for claims arising on or after January August <br/>
<a id="pl.1.25"></a><var>1.25</var>1, 2008 2007, and before July 1, 2009;<br/>
<a id="pl.1.26"></a><var>1.26</var>    (c) $500,000 when the claim is one for death by wrongful act or omission and <br/>
<a id="pl.1.27"></a><var>1.27</var>$500,000 to any claimant in any other case, for claims arising on or after July 1, 2009;<br/>
<a id="pl.1.28"></a><var>1.28</var>    (d) $750,000 for any number of claims arising out of a single occurrence, for claims <br/>
<a id="pl.1.29"></a><var>1.29</var>arising on or after January 1, 1998, and before January 1, 2000; <br/>
<a id="pl.2.1"></a><var>2.1</var>    (e) $1,000,000 for any number of claims arising out of a single occurrence, for <br/>
<a id="pl.2.2"></a><var>2.2</var>claims arising on or after January 1, 2000, and before January 1, 2008; <br/>
<a id="pl.2.3"></a><var>2.3</var>    (f) $1,200,000 for any number of claims arising out of a single occurrence, for <br/>
<a id="pl.2.4"></a><var>2.4</var>claims arising on or after January 1, 2008, and before July 1, 2009; or<br/>
<a id="pl.2.5"></a><var>2.5</var>    (g) $1,500,000 for any number of claims arising out of a single occurrence, for <br/>
<a id="pl.2.6"></a><var>2.6</var>claims arising on or after July 1, 2009.<br/>
<a id="pl.2.7"></a><var>2.7</var>    If the amount awarded to or settled upon multiple claimants exceeds the applicable <br/>
<a id="pl.2.8"></a><var>2.8</var>limit under clause  (d), (e), (f), or  (g), any party may apply to the district court to apportion <br/>
<a id="pl.2.9"></a><var>2.9</var>to each claimant a proper share of the amount available under the applicable limit under <br/>
<a id="pl.2.10"></a><var>2.10</var>clause  (d), (e), (f), or  (g). The share apportioned to each claimant shall be in the proportion <br/>
<a id="pl.2.11"></a><var>2.11</var>that the ratio of the award or settlement bears to the aggregate awards and settlements for <br/>
<a id="pl.2.12"></a><var>2.12</var>all claims arising out of the occurrence.<br/>
<a id="pl.2.13"></a><var>2.13</var>    The limitation imposed by this subdivision on individual claimants includes damages <br/>
<a id="pl.2.14"></a><var>2.14</var>claimed for loss of services or loss of support arising out of the same tort.<br/>
<a id="pl.2.15"></a><var>2.15</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from August 1, 2007.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.16"></a><var>2.16</var>    Sec. 2. <b>[3.7391] PURPOSE.</b><br/>
<a id="pl.2.17"></a><var>2.17</var>    Subdivision 1. <b>Findings; I-35W bridge.</b> The legislature finds that the collapse of <br/>
<a id="pl.2.18"></a><var>2.18</var>the Interstate Highway 35W bridge over the Mississippi River in Minneapolis on August <br/>
<a id="pl.2.19"></a><var>2.19</var>1, 2007, was a catastrophe of historic proportions. The bridge was the third-busiest in the <br/>
<a id="pl.2.20"></a><var>2.20</var>state, carrying over 140,000 cars per day. Its collapse killed 13 people and injured more <br/>
<a id="pl.2.21"></a><var>2.21</var>than 100. No other structure owned by this state has ever fallen with such devastating <br/>
<a id="pl.2.22"></a><var>2.22</var>physical and psychological impact on so many. <br/>
<a id="pl.2.23"></a><var>2.23</var>    Subd. 2. <b>Compensation process.</b> The establishment of a compensation process <br/>
<a id="pl.2.24"></a><var>2.24</var>under sections 3.7391 to 3.7394 for survivors of the catastrophe furthers the public <br/>
<a id="pl.2.25"></a><var>2.25</var>interest by providing a remedy for survivors while avoiding the uncertainty and expense <br/>
<a id="pl.2.26"></a><var>2.26</var>of potentially complex and protracted litigation to resolve the issue of the liability of the <br/>
<a id="pl.2.27"></a><var>2.27</var>state, a municipality, or their employees for damages incurred by survivors.<br/>
<a id="pl.2.28"></a><var>2.28</var>    Subd. 3. <b>Not an admission of liability.</b> These findings are not an admission <br/>
<a id="pl.2.29"></a><var>2.29</var>of liability of the state, a municipality, or their employees for damages caused by the <br/>
<a id="pl.2.30"></a><var>2.30</var>catastrophe.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.31"></a><var>2.31</var>    Sec. 3. <b>[3.7392] DEFINITIONS.</b><br/>
<a id="pl.2.32"></a><var>2.32</var>    Subdivision 1. <b>Application.</b> The definitions in this section apply to sections 3.7391 <br/>
<a id="pl.2.33"></a><var>2.33</var>to 3.7394.<br/>
<a id="pl.3.1"></a><var>3.1</var>    Subd. 2. <b>Catastrophe.</b> "Catastrophe" means the collapse of the I-35W bridge over <br/>
<a id="pl.3.2"></a><var>3.2</var>the Mississippi River in Minneapolis on August 1, 2007.<br/>
<a id="pl.3.3"></a><var>3.3</var>    Subd. 3. <b>Damages.</b> "Damages" means damages that are compensable under state <br/>
<a id="pl.3.4"></a><var>3.4</var>tort law and damages for wrongful death that are compensable under  section 573.02. <br/>
<a id="pl.3.5"></a><var>3.5</var>Damages do not include punitive damages or attorney fees or other fees incurred by a <br/>
<a id="pl.3.6"></a><var>3.6</var>survivor in making a claim under this section or other law.<br/>
<a id="pl.3.7"></a><var>3.7</var>    Subd. 4. <b>Emergency relief fund.</b> "Emergency relief fund" means the I-35W bridge <br/>
<a id="pl.3.8"></a><var>3.8</var>emergency relief fund created by the state on November 30, 2007.<br/>
<a id="pl.3.9"></a><var>3.9</var>    Subd. 5. <b>Municipality.</b> "Municipality" has the meaning given in section 466.01.<br/>
<a id="pl.3.10"></a><var>3.10</var>    Subd. 6. <b>Panel.</b> "Panel" means the special master panel created under section <br/>
<a id="pl.3.11"></a><var>3.11</var>3.7393.<br/>
<a id="pl.3.12"></a><var>3.12</var>    Subd. 7. <b>State.</b> "State" has the meaning given in  section 3.732.<br/>
<a id="pl.3.13"></a><var>3.13</var>    Subd. 8. <b>Survivor.</b> "Survivor" means a natural person who was present on the <br/>
<a id="pl.3.14"></a><var>3.14</var>I-35W bridge at the time of the collapse. Survivor also includes:<br/>
<a id="pl.3.15"></a><var>3.15</var>    (1) the parent or legal guardian of a survivor who is under 18 years of age;<br/>
<a id="pl.3.16"></a><var>3.16</var>    (2) a legally appointed representative of a survivor; or<br/>
<a id="pl.3.17"></a><var>3.17</var>    (3) the surviving spouse or next of kin of a deceased survivor who would be entitled <br/>
<a id="pl.3.18"></a><var>3.18</var>to bring an action under section 573.02.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.19"></a><var>3.19</var>    Sec. 4. <b>[3.7393] CONSIDERATION AND PAYMENT OF CLAIMS.</b><br/>
<a id="pl.3.20"></a><var>3.20</var>    Subdivision 1. <b>Special master panel.</b> The chief justice of the Supreme Court <br/>
<a id="pl.3.21"></a><var>3.21</var>shall establish a special master panel to consider claims, make offers of settlement, and <br/>
<a id="pl.3.22"></a><var>3.22</var>enter into settlement agreements with survivors on behalf of the state. The panel must <br/>
<a id="pl.3.23"></a><var>3.23</var>be established by June 30, 2008. The panel must consist of three attorneys. Members of <br/>
<a id="pl.3.24"></a><var>3.24</var>the panel must have experience in legal issues involving the settlement of tort claims and <br/>
<a id="pl.3.25"></a><var>3.25</var>the determination of damages. The chief justice shall designate a member of the panel <br/>
<a id="pl.3.26"></a><var>3.26</var>to serve as chair of the panel. The chief justice shall determine the pay and expenses to <br/>
<a id="pl.3.27"></a><var>3.27</var>be received by the panel.<br/>
<a id="pl.3.28"></a><var>3.28</var>    Subd. 2. <b>Staff.</b> Within the limits of available appropriations, the state court <br/>
<a id="pl.3.29"></a><var>3.29</var>administrator, in consultation with the panel, shall hire employees or retain consultants <br/>
<a id="pl.3.30"></a><var>3.30</var>necessary to assist the panel in performing its duties under this section. Employees are in <br/>
<a id="pl.3.31"></a><var>3.31</var>the unclassified state civil service. The panel may also use consultants who are under a <br/>
<a id="pl.3.32"></a><var>3.32</var>contract with the state or current state employees to assist the panel in processing claims <br/>
<a id="pl.3.33"></a><var>3.33</var>under this section.<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 3. <b>Records.</b> Records of the panel related to a claim filed by a survivor, an <br/>
<a id="pl.4.2"></a><var>4.2</var>offer of settlement, or an acceptance or rejection of an offer are not accessible to the <br/>
<a id="pl.4.3"></a><var>4.3</var>public except for:<br/>
<a id="pl.4.4"></a><var>4.4</var>    (1) the name of the survivor; and<br/>
<a id="pl.4.5"></a><var>4.5</var>    (2) the terms of any written settlement agreement between the survivor and the state.<br/>
<a id="pl.4.6"></a><var>4.6</var>    Subd. 4. <b>Procedure.</b> Consistent with sections 3.7391 to 3.7394, the panel may <br/>
<a id="pl.4.7"></a><var>4.7</var>adopt and modify procedures, rules, and forms for considering claims, making offers of <br/>
<a id="pl.4.8"></a><var>4.8</var>settlement, entering into settlement agreements, and considering requests for and making <br/>
<a id="pl.4.9"></a><var>4.9</var>supplemental payments. The panel must allow each survivor to appear in person before <br/>
<a id="pl.4.10"></a><var>4.10</var>the panel or one of its members.<br/>
<a id="pl.4.11"></a><var>4.11</var>    Subd. 5. <b>Payment of panel expenses.</b> The state court administrator shall forward <br/>
<a id="pl.4.12"></a><var>4.12</var>documentation of salaries, expenses, and administrative costs under this section to the <br/>
<a id="pl.4.13"></a><var>4.13</var>commissioner of finance for payment of those amounts.<br/>
<a id="pl.4.14"></a><var>4.14</var>    Subd. 6. <b>Immunity.</b> Members of the panel and employees and consultants acting <br/>
<a id="pl.4.15"></a><var>4.15</var>under the direction of the panel are absolutely immune from civil liability for any act or <br/>
<a id="pl.4.16"></a><var>4.16</var>omission occurring within the scope of the performance of their duties under this section.<br/>
<a id="pl.4.17"></a><var>4.17</var>    Subd. 7. <b>General duties.</b> The panel shall consider claims, make offers of settlement, <br/>
<a id="pl.4.18"></a><var>4.18</var>and enter into settlement agreements with survivors as provided in this section. The panel <br/>
<a id="pl.4.19"></a><var>4.19</var>must not consider negligence or any other theory of liability. The panel shall make offers <br/>
<a id="pl.4.20"></a><var>4.20</var>of settlement and supplemental payments under this section with the assumption that no <br/>
<a id="pl.4.21"></a><var>4.21</var>future appropriation will be available for these purposes and shall include a notice of this <br/>
<a id="pl.4.22"></a><var>4.22</var>provision when making settlement offers.<br/>
<a id="pl.4.23"></a><var>4.23</var>    Subd. 8. <b>Effect and finality of offers and settlement agreements.</b> (a) An offer of <br/>
<a id="pl.4.24"></a><var>4.24</var>settlement made to a survivor under this section is considered for all purposes to be an <br/>
<a id="pl.4.25"></a><var>4.25</var>offer to the survivor to settle a legal claim.<br/>
<a id="pl.4.26"></a><var>4.26</var>    (b) A determination by the panel regarding an offer of settlement or settlement <br/>
<a id="pl.4.27"></a><var>4.27</var>agreement or a supplemental payment is final and not subject to judicial review.<br/>
<a id="pl.4.28"></a><var>4.28</var>(c) The amount of damages incurred by a survivor calculated by the panel pursuant <br/>
<a id="pl.4.29"></a><var>4.29</var>to subdivision 10 may not be used in a subsequent court proceeding in evidence or <br/>
<a id="pl.4.30"></a><var>4.30</var>otherwise to determine any rights, duties, or responsibilities of the state or any other party.<br/>
<a id="pl.4.31"></a><var>4.31</var>    Subd. 9. <b>Deadlines.</b> In order to be eligible to receive an offer of settlement or enter <br/>
<a id="pl.4.32"></a><var>4.32</var>into a settlement agreement under this section or to receive a supplemental payment <br/>
<a id="pl.4.33"></a><var>4.33</var>under subdivision 12, a survivor must file a claim with the panel by October 15, 2008. <br/>
<a id="pl.4.34"></a><var>4.34</var>Any offer of settlement must be made by February 28, 2009. A survivor must accept or <br/>
<a id="pl.4.35"></a><var>4.35</var>reject the offer of settlement within 45 days after receiving the offer. Failure to accept an <br/>
<a id="pl.5.1"></a><var>5.1</var>offer within 45 days is a rejection. A survivor who is eligible to receive a supplemental <br/>
<a id="pl.5.2"></a><var>5.2</var>payment under subdivision 12 may choose to wait until the survivor's supplemental <br/>
<a id="pl.5.3"></a><var>5.3</var>payment is calculated before accepting or rejecting an offer of settlement, provided that a <br/>
<a id="pl.5.4"></a><var>5.4</var>survivor may not accept an offer of settlement later than 45 days after receiving notice of <br/>
<a id="pl.5.5"></a><var>5.5</var>the proposed supplemental payment award. The decision to accept or reject an offer is <br/>
<a id="pl.5.6"></a><var>5.6</var>irrevocable. The panel must notify a survivor of the deadlines for response to an offer of <br/>
<a id="pl.5.7"></a><var>5.7</var>settlement as provided in this subdivision.<br/>
<a id="pl.5.8"></a><var>5.8</var>    Subd. 10. <b>Calculation of amount.</b> The panel shall determine the total damages <br/>
<a id="pl.5.9"></a><var>5.9</var>incurred by a survivor. The amount of an offer of settlement under this section must be <br/>
<a id="pl.5.10"></a><var>5.10</var>calculated based on the total damages, less:<br/>
<a id="pl.5.11"></a><var>5.11</var>    (1) payments made to the survivor up to the date the settlement offer is made from <br/>
<a id="pl.5.12"></a><var>5.12</var>the collateral sources referred to in section 548.36, subdivision 1; <br/>
<a id="pl.5.13"></a><var>5.13</var>    (2) any payment made to the survivor from the emergency relief fund; and<br/>
<a id="pl.5.14"></a><var>5.14</var>    (3) any payments made or required to be made to the survivor by a third-party <br/>
<a id="pl.5.15"></a><var>5.15</var>tortfeasor under the terms of a settlement or other agreement with the survivor that exists <br/>
<a id="pl.5.16"></a><var>5.16</var>at the time the offer is made or a final judgment in favor of the survivor concerning claims <br/>
<a id="pl.5.17"></a><var>5.17</var>of the survivor that relate to, involve, or arise out of the catastrophe.<br/>
<a id="pl.5.18"></a><var>5.18</var>    Subd. 11. <b>Offers of settlement; limit on amount.</b> (a) The amount of an offer of <br/>
<a id="pl.5.19"></a><var>5.19</var>settlement or payment required by a settlement agreement must not exceed $400,000. <br/>
<a id="pl.5.20"></a><var>5.20</var>This limitation does not apply to a supplemental payment made under subdivision 12. An <br/>
<a id="pl.5.21"></a><var>5.21</var>offer of settlement must be accompanied by a notice to the survivor of the remainder of <br/>
<a id="pl.5.22"></a><var>5.22</var>the amount calculated under subdivision 10 that is not included in the offer because of the <br/>
<a id="pl.5.23"></a><var>5.23</var>limitation under this paragraph and the amount of the remainder for which a supplemental <br/>
<a id="pl.5.24"></a><var>5.24</var>payment may be awarded.<br/>
<a id="pl.5.25"></a><var>5.25</var>    (b) Notwithstanding section 3.736, subdivision 4, clause (e), or section 466.04, <br/>
<a id="pl.5.26"></a><var>5.26</var>subdivision 1, paragraph (a), clause (5), the $1,000,000 limitation on state or municipal <br/>
<a id="pl.5.27"></a><var>5.27</var>liability for claims arising out of a single occurrence otherwise applicable to the <br/>
<a id="pl.5.28"></a><var>5.28</var>catastrophe does not apply to payments made to survivors under this section. The amount <br/>
<a id="pl.5.29"></a><var>5.29</var>that may be paid by the state is limited by the appropriations for this purpose.<br/>
<a id="pl.5.30"></a><var>5.30</var>    Subd. 12. <b>Supplemental payments.</b> (a) For purposes of this subdivision, <br/>
<a id="pl.5.31"></a><var>5.31</var>"uncompensated medical expenses" means:<br/>
<a id="pl.5.32"></a><var>5.32</var>    (1) medical expenses less payments made to a survivor from collateral sources <br/>
<a id="pl.5.33"></a><var>5.33</var>referred to in section 548.36, subdivision 1, that provide payments for medical expenses; <br/>
<a id="pl.5.34"></a><var>5.34</var>and<br/>
<a id="pl.6.1"></a><var>6.1</var>    (2) the present value of premiums, deductibles, and coinsurance payments for <br/>
<a id="pl.6.2"></a><var>6.2</var>high-risk health plan coverage offered by the Minnesota Comprehensive Health <br/>
<a id="pl.6.3"></a><var>6.3</var>Association or by another similar health plan.<br/>
<a id="pl.6.4"></a><var>6.4</var>    (b) A survivor is eligible for a supplemental payment if the offer of settlement <br/>
<a id="pl.6.5"></a><var>6.5</var>calculation for the survivor, as provided in subdivision 10, exceeds $400,000. <br/>
<a id="pl.6.6"></a><var>6.6</var>The supplemental payment must be calculated based solely on that portion of the <br/>
<a id="pl.6.7"></a><var>6.7</var>uncompensated medical expenses, loss of income, future earning capacity, or other <br/>
<a id="pl.6.8"></a><var>6.8</var>financial support for which compensation was not received under the offer of settlement or <br/>
<a id="pl.6.9"></a><var>6.9</var>settlement agreement under subdivision 11. A supplemental payment may only be made <br/>
<a id="pl.6.10"></a><var>6.10</var>to a survivor who has accepted an offer of settlement, entered into a settlement agreement, <br/>
<a id="pl.6.11"></a><var>6.11</var>and executed a release under subdivision 13. Consistent with the requirements of this <br/>
<a id="pl.6.12"></a><var>6.12</var>section, the panel shall establish necessary procedures and timelines for the award of <br/>
<a id="pl.6.13"></a><var>6.13</var>supplemental payments. A supplemental payment may be made only for the following <br/>
<a id="pl.6.14"></a><var>6.14</var>purposes, in the following order of priority:<br/>
<a id="pl.6.15"></a><var>6.15</var>    (1) to pay uncompensated medical expenses in excess of those paid from the first <br/>
<a id="pl.6.16"></a><var>6.16</var>$400,000; and<br/>
<a id="pl.6.17"></a><var>6.17</var>    (2) to pay for loss of income, future earning capacity, or other financial support <br/>
<a id="pl.6.18"></a><var>6.18</var>not included in the first $400,000.<br/>
<a id="pl.6.19"></a><var>6.19</var>    No payment may be made to a survivor for loss of income under clause (2) unless <br/>
<a id="pl.6.20"></a><var>6.20</var>and until all survivors have been fully paid for all medical expenses for which they are <br/>
<a id="pl.6.21"></a><var>6.21</var>eligible under clause (1).<br/>
<a id="pl.6.22"></a><var>6.22</var>(c) If the available appropriation is insufficient to make full awards to all survivors <br/>
<a id="pl.6.23"></a><var>6.23</var>eligible for a supplemental payment, the panel may award the payments based on a uniform <br/>
<a id="pl.6.24"></a><var>6.24</var>percentage of the amount that is less than the full amount eligible for a supplemental <br/>
<a id="pl.6.25"></a><var>6.25</var>payment or take other steps the panel considers necessary to ensure that the available <br/>
<a id="pl.6.26"></a><var>6.26</var>appropriation is equitably distributed among all survivors who have requested and qualify <br/>
<a id="pl.6.27"></a><var>6.27</var>for a supplemental payment, subject to the order of priority under this subdivision.<br/>
<a id="pl.6.28"></a><var>6.28</var>    Subd. 13. <b>Release.</b> A survivor who accepts an offer of settlement from the panel <br/>
<a id="pl.6.29"></a><var>6.29</var>must agree in writing and in a form developed by the panel, with the approval of the <br/>
<a id="pl.6.30"></a><var>6.30</var>attorney general, to release the state and every municipality of this state and their <br/>
<a id="pl.6.31"></a><var>6.31</var>employees from liability, including claims for damages, arising from the catastrophe and <br/>
<a id="pl.6.32"></a><var>6.32</var>to cooperate with the state in pursuing claims the state may have against any other party. <br/>
<a id="pl.6.33"></a><var>6.33</var>The release must also provide that the survivor will indemnify the state, a municipality, <br/>
<a id="pl.6.34"></a><var>6.34</var>and their employees from any claim of contribution or indemnity, or both, made by other <br/>
<a id="pl.6.35"></a><var>6.35</var>persons against the state, a municipality, and their employees and that the survivor will <br/>
<a id="pl.6.36"></a><var>6.36</var>satisfy any judgment obtained by the survivor in an action against other persons to the <br/>
<a id="pl.7.1"></a><var>7.1</var>extent of the release, if the claim or judgment relates in any way to a claim of the survivor <br/>
<a id="pl.7.2"></a><var>7.2</var>arising from the catastrophe. The release must provide for the subrogation interest of the <br/>
<a id="pl.7.3"></a><var>7.3</var>state under section 3.7394, subdivision 5. A survivor who previously has commenced an <br/>
<a id="pl.7.4"></a><var>7.4</var>administrative, court, or other action against the state or a municipality of the state or their <br/>
<a id="pl.7.5"></a><var>7.5</var>employees seeking recovery from loss resulting from the catastrophe must agree to dismiss <br/>
<a id="pl.7.6"></a><var>7.6</var>or otherwise withdraw the action before receiving compensation under this section.<br/>
<a id="pl.7.7"></a><var>7.7</var>    Subd. 14. <b>Payment.</b> The panel shall promptly forward to the commissioner of <br/>
<a id="pl.7.8"></a><var>7.8</var>finance documentation of each settlement agreement that has been entered into under <br/>
<a id="pl.7.9"></a><var>7.9</var>this section. Except as provided in section 3.7394, subdivision 4, paragraph (b), the <br/>
<a id="pl.7.10"></a><var>7.10</var>commissioner of finance shall pay the agreed amount within 45 days after receiving the <br/>
<a id="pl.7.11"></a><var>7.11</var>documentation and in the order in which the documentation from the panel was received.<br/>
<a id="pl.7.12"></a><var>7.12</var>    Subd. 15. <b>Election to proceed in district court.</b> (a) A survivor may elect not to file <br/>
<a id="pl.7.13"></a><var>7.13</var>a claim with the panel or not to accept an offer of settlement from the panel. A survivor <br/>
<a id="pl.7.14"></a><var>7.14</var>who elects not to file a claim with the panel or not to accept an offer of settlement has not <br/>
<a id="pl.7.15"></a><var>7.15</var>waived any legal rights that may be asserted against the state or a municipality or their <br/>
<a id="pl.7.16"></a><var>7.16</var>employees and may proceed with a claim in district court.<br/>
<a id="pl.7.17"></a><var>7.17</var>    (b) If a survivor elects not to accept an offer of settlement, the state or a municipality <br/>
<a id="pl.7.18"></a><var>7.18</var>or their employees may not use any data provided by the survivor to the panel in a <br/>
<a id="pl.7.19"></a><var>7.19</var>subsequent legal proceeding. The state or a municipality or their employees may obtain <br/>
<a id="pl.7.20"></a><var>7.20</var>information, including data provided to the panel, through discovery or other legal <br/>
<a id="pl.7.21"></a><var>7.21</var>processes.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.7.22"></a><var>7.22</var>    Sec. 5. <b>[3.7394] EFFECT OF SPECIAL COMPENSATION PROCESS; </b><br/>
<a id="pl.7.23"></a><var>7.23</var><b>RELATIONSHIP TO OTHER LAW.</b><br/>
<a id="pl.7.24"></a><var>7.24</var>    Subdivision 1. <b>No state liability or duty created.</b> The establishment of the <br/>
<a id="pl.7.25"></a><var>7.25</var>special compensation process under section 3.7393 and the emergency relief fund, and <br/>
<a id="pl.7.26"></a><var>7.26</var>an offer of settlement or a settlement agreement, is not an admission of liability by the <br/>
<a id="pl.7.27"></a><var>7.27</var>state or a municipality or their employees and does not establish a duty of the state, a <br/>
<a id="pl.7.28"></a><var>7.28</var>municipality, or their employees to compensate survivors. The creation and funding <br/>
<a id="pl.7.29"></a><var>7.29</var>of the compensation process under sections 3.7391 to 3.7394 or an offer of settlement <br/>
<a id="pl.7.30"></a><var>7.30</var>or settlement agreement is not admissible in a judicial or administrative proceeding to <br/>
<a id="pl.7.31"></a><var>7.31</var>establish liability or a legal duty.<br/>
<a id="pl.7.32"></a><var>7.32</var>    Subd. 2. <b>Payments as additional compensation.</b> Payments made under section <br/>
<a id="pl.7.33"></a><var>7.33</var>3.7393 or from the emergency relief fund are intended to supplement and be in addition to <br/>
<a id="pl.7.34"></a><var>7.34</var>any payments required to be made by a third party under law or contract.<br/>
<a id="pl.8.1"></a><var>8.1</var>    Subd. 3. <b>Payments from other sources.</b> Notwithstanding any statutory or common <br/>
<a id="pl.8.2"></a><var>8.2</var>law or agreement to the contrary, a person required to make payments, including future <br/>
<a id="pl.8.3"></a><var>8.3</var>payments, to a survivor may not eliminate or reduce those payments as a result of <br/>
<a id="pl.8.4"></a><var>8.4</var>compensation paid to the survivor under section 3.7393 or from the emergency relief fund <br/>
<a id="pl.8.5"></a><var>8.5</var>or as a result of the survivor's release of claims against the state, a municipality, or their <br/>
<a id="pl.8.6"></a><var>8.6</var>employees under section 3.7393. The obligation of any person other than the state to make <br/>
<a id="pl.8.7"></a><var>8.7</var>payments to a survivor is primary as compared to any payment made or to be made under <br/>
<a id="pl.8.8"></a><var>8.8</var>section 3.7393 or from the emergency relief fund. The persons referenced in and covered <br/>
<a id="pl.8.9"></a><var>8.9</var>by this subdivision and subdivision 4 include, without limitation:<br/>
<a id="pl.8.10"></a><var>8.10</var>    (1) reparation obligors, as defined in section 65B.43, subdivision 9, whether they are <br/>
<a id="pl.8.11"></a><var>8.11</var>insurers or self-insurers;<br/>
<a id="pl.8.12"></a><var>8.12</var>    (2) health plan companies, as defined in section 62Q.01, subdivision 4, including the <br/>
<a id="pl.8.13"></a><var>8.13</var>Minnesota Comprehensive Health Association created under section 62E.10;<br/>
<a id="pl.8.14"></a><var>8.14</var>    (3) insurance companies, as defined in section 60A.02, subdivision 4;<br/>
<a id="pl.8.15"></a><var>8.15</var>    (4) self-insured pools of political subdivisions organized under section 471.617 or <br/>
<a id="pl.8.16"></a><var>8.16</var>471.981, including service cooperatives pools organized under section 123A.21;<br/>
<a id="pl.8.17"></a><var>8.17</var>    (5) risk retention groups, as defined in section 60E.02, subdivision 12;<br/>
<a id="pl.8.18"></a><var>8.18</var>    (6) joint self-insurance plans governed by chapter 60F;<br/>
<a id="pl.8.19"></a><var>8.19</var>    (7) workers' compensation insurers and private self-insurers, as defined in section <br/>
<a id="pl.8.20"></a><var>8.20</var>79.01;<br/>
<a id="pl.8.21"></a><var>8.21</var>    (8) the Minnesota Life and Health Insurance Guaranty Association governed by <br/>
<a id="pl.8.22"></a><var>8.22</var>chapter 61B;<br/>
<a id="pl.8.23"></a><var>8.23</var>    (9) the Minnesota Insurance Guaranty Association governed by chapter 60C;<br/>
<a id="pl.8.24"></a><var>8.24</var>    (10) the Minnesota Joint Underwriting Association governed by chapter 62I;<br/>
<a id="pl.8.25"></a><var>8.25</var>    (11) all insurers providing credit life, credit accident and health, and credit <br/>
<a id="pl.8.26"></a><var>8.26</var>involuntary unemployment insurance under chapter 62B, but also including those <br/>
<a id="pl.8.27"></a><var>8.27</var>coverages written in connection with real estate mortgage loans and those provided to <br/>
<a id="pl.8.28"></a><var>8.28</var>borrowers at no additional cost;<br/>
<a id="pl.8.29"></a><var>8.29</var>    (12) the Minnesota unemployment insurance program provided under chapter 268;<br/>
<a id="pl.8.30"></a><var>8.30</var>    (13) coverage offered by the state under medical assistance, general assistance <br/>
<a id="pl.8.31"></a><var>8.31</var>medical care, and MinnesotaCare; and<br/>
<a id="pl.8.32"></a><var>8.32</var>    (14) any other plan providing health, life, disability income, or long-term care <br/>
<a id="pl.8.33"></a><var>8.33</var>coverage.<br/>
<a id="pl.8.34"></a><var>8.34</var>    Subd. 4. <b>No third-party subrogation or recovery.</b> (a) Notwithstanding any <br/>
<a id="pl.8.35"></a><var>8.35</var>statutory or common law or agreement to the contrary, a person who has paid benefits or <br/>
<a id="pl.8.36"></a><var>8.36</var>compensation to or on behalf of a survivor does not have a subrogation or other right to <br/>
<a id="pl.9.1"></a><var>9.1</var>recover those benefits or compensation by making a claim, or recovering from payments <br/>
<a id="pl.9.2"></a><var>9.2</var>made, under section 3.7393 or from the emergency relief fund.<br/>
<a id="pl.9.3"></a><var>9.3</var>    (b) Following a settlement agreement under section 3.7393, a person who believes <br/>
<a id="pl.9.4"></a><var>9.4</var>that the state cannot constitutionally prohibit assertion of a subrogation claim and who is <br/>
<a id="pl.9.5"></a><var>9.5</var>claiming a subrogation interest against the amount to be paid by the state has 40 days after <br/>
<a id="pl.9.6"></a><var>9.6</var>the settlement agreement was entered into to provide notice to the state and the survivor of <br/>
<a id="pl.9.7"></a><var>9.7</var>the person's intent to assert that interest, during which time the commissioner of finance <br/>
<a id="pl.9.8"></a><var>9.8</var>must not make the payment. The subrogation claim is waived if the notice is not provided <br/>
<a id="pl.9.9"></a><var>9.9</var>by the deadline. If no notice is received by the deadline, the commissioner of finance shall <br/>
<a id="pl.9.10"></a><var>9.10</var>make the payment. If a notice of claim is received, the commissioner shall withhold the <br/>
<a id="pl.9.11"></a><var>9.11</var>payment until the subrogee abandons or waives the subrogation claim.<br/>
<a id="pl.9.12"></a><var>9.12</var>    Subd. 5. <b>Reimbursement of state; right of subrogation.</b> (a) Notwithstanding any <br/>
<a id="pl.9.13"></a><var>9.13</var>statutory or common law to the contrary, the state is entitled to recover from any third <br/>
<a id="pl.9.14"></a><var>9.14</var>party, including an agent, contractor, or vendor retained by the state, any payments made <br/>
<a id="pl.9.15"></a><var>9.15</var>from the emergency relief fund or under section 3.7393 to the extent the third party caused <br/>
<a id="pl.9.16"></a><var>9.16</var>or contributed to the catastrophe. The state is entitled to be reimbursed regardless of <br/>
<a id="pl.9.17"></a><var>9.17</var>whether the survivor is fully compensated.<br/>
<a id="pl.9.18"></a><var>9.18</var>    (b) Notwithstanding any statutory or common law to the contrary, the state is <br/>
<a id="pl.9.19"></a><var>9.19</var>subrogated to all potential claims against third-party tortfeasors of a survivor receiving <br/>
<a id="pl.9.20"></a><var>9.20</var>payment from the emergency relief fund or under section 3.7393 to the extent the claims <br/>
<a id="pl.9.21"></a><var>9.21</var>relate to, involve, or arise out of the catastrophe. The subrogation right of the state under <br/>
<a id="pl.9.22"></a><var>9.22</var>this subdivision is limited to the amount paid to the survivor from the emergency relief <br/>
<a id="pl.9.23"></a><var>9.23</var>fund and under section 3.7393. The rights of the state under this subdivision are in <br/>
<a id="pl.9.24"></a><var>9.24</var>addition to other remedies, claims, and rights relating to the catastrophe that the state may <br/>
<a id="pl.9.25"></a><var>9.25</var>have against other persons for the recovery of monetary or other relief.<br/>
<a id="pl.9.26"></a><var>9.26</var>    (c) A survivor must notify the state if the survivor has been fully compensated by <br/>
<a id="pl.9.27"></a><var>9.27</var>third parties for damages caused by the catastrophe. A survivor is fully compensated if <br/>
<a id="pl.9.28"></a><var>9.28</var>payments made or required to be made to the survivor by a third-party tortfeasor under the <br/>
<a id="pl.9.29"></a><var>9.29</var>terms of a settlement agreement or other agreement with the survivor or a final judgment <br/>
<a id="pl.9.30"></a><var>9.30</var>in favor of the survivor concerning claims that relate to, involve, or arise out of the <br/>
<a id="pl.9.31"></a><var>9.31</var>catastrophe are equal to or greater than the total damages incurred by the survivor as <br/>
<a id="pl.9.32"></a><var>9.32</var>determined by the panel under section 3.7393, subdivision 10. The state is entitled to be <br/>
<a id="pl.9.33"></a><var>9.33</var>reimbursed by a survivor only to the extent that these payments are greater than the total <br/>
<a id="pl.9.34"></a><var>9.34</var>damages incurred by the survivor.<br/>
<a id="pl.9.35"></a><var>9.35</var>    Subd. 6. <b>Amounts not considered for purposes of limit on government tort </b><br/>
<a id="pl.9.36"></a><var>9.36</var><b>liability.</b> Payments made to survivors under section 3.7393 or from the emergency relief <br/>
<a id="pl.10.1"></a><var>10.1</var>fund are not to be considered in calculating the $1,000,000 limit on tort claims in civil <br/>
<a id="pl.10.2"></a><var>10.2</var>actions against the state arising out of the catastrophe for purposes of  section 3.736, <br/>
<a id="pl.10.3"></a><var>10.3</var>subdivision 4, clause (e), or a municipality arising out of the catastrophe for purposes of <br/>
<a id="pl.10.4"></a><var>10.4</var>section 466.04, subdivision 1, clause (5).<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.10.5"></a><var>10.5</var>    Sec. 6. <b>APPROPRIATIONS.</b><br/>
<a id="pl.10.6"></a><var>10.6</var>    Subdivision 1. <b>Compensation to survivors.</b> $24,000,000 is appropriated from <br/>
<a id="pl.10.7"></a><var>10.7</var>the general fund to the commissioner of finance to make payments under settlement <br/>
<a id="pl.10.8"></a><var>10.8</var>agreements entered into by the panel under Minnesota Statutes, section 3.7393, <br/>
<a id="pl.10.9"></a><var>10.9</var>subdivision 11. This appropriation is available until June 30, 2010. <br/>
<a id="pl.10.10"></a><var>10.10</var>    Subd. 2. <b>Supplemental payments.</b> $12,640,000 is appropriated from the general <br/>
<a id="pl.10.11"></a><var>10.11</var>fund to the commissioner of finance to make supplemental payments under Minnesota <br/>
<a id="pl.10.12"></a><var>10.12</var>Statutes, section 3.7393, subdivision 12. This appropriation is available until June 30, <br/>
<a id="pl.10.13"></a><var>10.13</var>2010.<br/>
<a id="pl.10.14"></a><var>10.14</var>    Subd. 3. <b>Administrative expenses.</b> $750,000 is appropriated from the general <br/>
<a id="pl.10.15"></a><var>10.15</var>fund to the commissioner of finance to pay salaries, expenses, and administrative costs <br/>
<a id="pl.10.16"></a><var>10.16</var>associated with making offers of settlement and entering into settlement agreements under <br/>
<a id="pl.10.17"></a><var>10.17</var>Minnesota Statutes, section 3.7393. This appropriation is available until June 30, 2009.<br/>
<a id="pl.10.18"></a><var>10.18</var>    Subd. 4. <b>Waite House.</b>  $610,000 is appropriated from the general fund to the <br/>
<a id="pl.10.19"></a><var>10.19</var>commissioner of finance for a grant to Pillsbury United Communities in Minneapolis, to <br/>
<a id="pl.10.20"></a><var>10.20</var>allow Waite House in Minneapolis to provide services to youth and families of youth who <br/>
<a id="pl.10.21"></a><var>10.21</var>were on a school bus on the I-35W bridge when the bridge collapsed. Services paid for <br/>
<a id="pl.10.22"></a><var>10.22</var>with this appropriation must not be services that could have been funded by settlement <br/>
<a id="pl.10.23"></a><var>10.23</var>payments made to survivors. The commissioner must pay the first half of the grant by <br/>
<a id="pl.10.24"></a><var>10.24</var>June 30, 2008, and pay the second half of the grant on June 30, 2009. Pillsbury United <br/>
<a id="pl.10.25"></a><var>10.25</var>Communities must report to the chairs of the senate Finance and house Ways and Means <br/>
<a id="pl.10.26"></a><var>10.26</var>Committees by June 30, 2009, and June 30, 2010, on expenditure of money under this <br/>
<a id="pl.10.27"></a><var>10.27</var>subdivision. The appropriation is available until June 30, 2010.<br/>
<a id="pl.10.28"></a><var>10.28</var>    Subd. 5. <b>Report.</b> The commissioner of finance must report to the legislature by <br/>
<a id="pl.10.29"></a><var>10.29</var>January 15 in each of 2009, 2010, and 2011, on expenditure of the appropriations in this <br/>
<a id="pl.10.30"></a><var>10.30</var>section. The report must list the amount of compensation paid to each survivor and must <br/>
<a id="pl.10.31"></a><var>10.31</var>list administrative expenses incurred by the special master panel.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.10.32"></a><var>10.32</var>    Sec. 7. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.10.33"></a><var>10.33</var>    This act is effective the day following final enactment."<br/>
<a id="pl.10.34"></a><var>10.34</var>Delete the title and insert:<br/>

<a id="pl.11.3"></a><var>11.3</var>process for survivors of the I-35W catastrophe; appropriating money;amending <br/>
<a id="pl.11.4"></a><var>11.4</var>Minnesota Statutes 2006, section 3.736, subdivision 4; proposing coding for new <br/>
<a id="pl.11.5"></a><var>11.5</var>law in Minnesota Statutes, chapter 3."<br/>
         		We request the adoption of this report and repassage of the bill.House Conferees: (Signed) Ryan Winkler, Phyllis Kahn, Loren Solberg, Steve Simon, Chris DeLaForestSenate Conferees: (Signed) Ron Latz, David W. Hann, Linda Scheid, Don Betzold, Mee Moua
         <table>
<col width="50px"/>
<col width="252px"/>
<col width="42px"/>
<col width="252px"/>
<tr>
<td><a id="pl.12.1"></a><var>12.1</var><br/>
</td>
<td colspan="3">We request the adoption of this report and repassage of the bill.<br/>
</td>
</tr>
<tr>
<td><a id="pl.12.2"></a><var>12.2</var><br/>
</td>
<td>House Conferees:<span width="2em"></span>(Signed)<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.12.3"></a><var>12.3</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.12.4"></a><var>12.4</var><br/>
</td>
<td>Ryan Winkler<br/>
</td>
<td></td>
<td>Phyllis Kahn<br/>
</td>
</tr>
<tr>
<td><a id="pl.12.5"></a><var>12.5</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.12.6"></a><var>12.6</var><br/>
</td>
<td>Loren Solberg<br/>
</td>
<td></td>
<td>Steve Simon<br/>
</td>
</tr>
<tr>
<td><a id="pl.12.7"></a><var>12.7</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.12.8"></a><var>12.8</var><br/>
</td>
<td>Chris DeLaForest<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.12.9"></a><var>12.9</var><br/>
</td>
<td>Senate Conferees:<span width="2em"></span>(Signed)<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.12.10"></a><var>12.10</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.12.11"></a><var>12.11</var><br/>
</td>
<td>Ron Latz<br/>
</td>
<td></td>
<td>David W. Hann<br/>
</td>
</tr>
<tr>
<td><a id="pl.12.12"></a><var>12.12</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.12.13"></a><var>12.13</var><br/>
</td>
<td>Linda Scheid<br/>
</td>
<td></td>
<td>Don Betzold<br/>
</td>
</tr>
<tr>
<td><a id="pl.12.14"></a><var>12.14</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.12.15"></a><var>12.15</var><br/>
</td>
<td>Mee Moua<br/>
</td>
<td></td>
<td></td>
</tr>
</table>