HF 2553

2nd Unofficial Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/15/2009 12:00 a.m.

1.1A bill for an act 1.2relating to transportation; providing an alternative compensation and settlement 1.3process for victims of the I-35W bridge collapse; changing the effective date of 1.4an increase in individual damage caps for state tort claims; appropriating money; 1.5amending Minnesota Statutes 2006, section 3.736, subdivision 4. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7ARTICLE 1 1.8STATE TORT CLAIMS 1.9    Section 1. Minnesota Statutes 2006, section 3.736, subdivision 4, is amended to read: 1.10    Subd. 4. Limits. The total liability of the state and its employees acting within the 1.11scope of their employment on any tort claim shall not exceed: 1.12    (a) $300,000 when the claim is one for death by wrongful act or omission and 1.13$300,000 to any claimant in any other case, for claims arising before January new text begin August new text end 1.141, 2008 new text begin 2007 new text end ; 1.15    (b) $400,000 when the claim is one for death by wrongful act or omission and 1.16$400,000 to any claimant in any other case, for claims arising on or after January new text begin August new text end 1.171, 2008 new text begin 2007 new text end , and before July 1, 2009; 1.18    (c) $500,000 when the claim is one for death by wrongful act or omission and 1.19$500,000 to any claimant in any other case, for claims arising on or after July 1, 2009; 1.20    (d) $750,000 for any number of claims arising out of a single occurrence, for claims 1.21arising on or after January 1, 1998, and before January 1, 2000; 1.22    (e) $1,000,000 for any number of claims arising out of a single occurrence, for 1.23claims arising on or after January 1, 2000, and before January 1, 2008; 2.1    (f) $1,200,000 for any number of claims arising out of a single occurrence, for 2.2claims arising on or after January 1, 2008, and before July 1, 2009; or 2.3    (g) $1,500,000 for any number of claims arising out of a single occurrence, for 2.4claims arising on or after July 1, 2009. 2.5    If the amount awarded to or settled upon multiple claimants exceeds the applicable 2.6limit under clause (d), (e), (f), or (g), any party may apply to the district court to apportion 2.7to each claimant a proper share of the amount available under the applicable limit under 2.8clause (d), (e), (f), or (g). The share apportioned to each claimant shall be in the proportion 2.9that the ratio of the award or settlement bears to the aggregate awards and settlements for 2.10all claims arising out of the occurrence. 2.11    The limitation imposed by this subdivision on individual claimants includes damages 2.12claimed for loss of services or loss of support arising out of the same tort. 2.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from August 1, 2007. new text end 2.14ARTICLE 2 2.15I-35W BRIDGE COLLAPSE 2.16    Section 1. new text begin COMPENSATION FOR VICTIMS OF I-35W BRIDGE COLLAPSE. new text end 2.17     new text begin Subdivision 1. new text end new text begin Findings. new text end new text begin (a) The legislature finds that the collapse of the Interstate new text end 2.18 new text begin Highway 35W bridge over the Mississippi River in Minneapolis on August 1, 2007, new text end 2.19 new text begin was a catastrophe of historic proportions. The bridge was the third-busiest in the state, new text end 2.20 new text begin carrying over 140,000 cars per day. Its collapse killed 13 people and injured more than new text end 2.21 new text begin 100. No other state-owned structure has ever fallen with such devastating physical and new text end 2.22 new text begin psychological impact on so many. new text end 2.23     new text begin (b) The establishment of a compensation process for victims of the bridge collapse new text end 2.24 new text begin furthers the public interest by providing a remedy for victims while avoiding the new text end 2.25 new text begin uncertainty and expense of potentially complex and protracted litigation to resolve the new text end 2.26 new text begin issue of the liability of the state, a municipality, or their employees for damages incurred new text end 2.27 new text begin by victims. new text end 2.28     new text begin (c) These findings are not an admission of liability of the state, a municipality, or new text end 2.29 new text begin their employees for damages caused by the bride collapse. new text end 2.30     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin For purposes of this article: new text end 2.31     new text begin (a) "Damages" means damages that are compensable under state tort law and new text end 2.32 new text begin damages for wrongful death that are compensable under Minnesota Statutes, section new text end 2.33 new text begin 573.02. Damages do not include punitive damages or attorney fees or other fees incurred new text end 2.34 new text begin by a victim in making a claim under this section or other law. new text end 3.1     new text begin (b) "Emergency relief fund" means the I-35W bridge emergency relief fund created new text end 3.2 new text begin by the state on November 30, 2007. new text end 3.3     new text begin (c) "Municipality" has the meaning given in Minnesota Statutes, section 466.01. new text end 3.4     new text begin (d) "Panel" means the special master panel created under subdivision 3. new text end 3.5     new text begin (e) "State" has the meaning given in Minnesota Statutes, section 3.732. new text end 3.6     new text begin (f) "Victim" means a natural person who was present on the I-35W bridge at the new text end 3.7 new text begin time of the collapse. Victim also includes: new text end 3.8     new text begin (1) the parent or legal guardian of a victim who is under 18 years of age; new text end 3.9     new text begin (2) a legally appointed representative of a victim; or new text end 3.10     new text begin (3) the surviving spouse or next of kin of a victim who would be entitled to bring an new text end 3.11 new text begin action under Minnesota Statutes, section 573.02. new text end 3.12     new text begin Subd. 3. new text end new text begin Special master panel; administration. new text end new text begin (a) The chief justice of the new text end 3.13 new text begin Supreme Court shall establish a special master panel to consider claims, make offers of new text end 3.14 new text begin settlement, and enter into settlement agreements with victims on behalf of the state. The new text end 3.15 new text begin panel must consist of three attorneys, at least one of whom must be a retired judge of the new text end 3.16 new text begin appellate or district courts of this state. Nonjudicial members of the panel must have new text end 3.17 new text begin experience in legal issues involving the settlement of tort claims and the determination of new text end 3.18 new text begin damages. The chief justice shall designate a member of the panel who is a retired judge new text end 3.19 new text begin to serve as chair of the panel. The chief justice shall determine the pay and expenses to new text end 3.20 new text begin be received by the panel. new text end 3.21     new text begin (b) Within the limits of available appropriations, the state court administrator, in new text end 3.22 new text begin consultation with the panel, shall hire employees or retain consultants necessary to assist new text end 3.23 new text begin the panel in performing its duties under this section. Employees are in the unclassified new text end 3.24 new text begin state civil service. The panel may also use current state employees or consultants who are new text end 3.25 new text begin under a contract with the state to assist the panel in processing claims under this section. new text end 3.26     new text begin (c) The panel may adopt procedures, rules, and forms for considering claims, making new text end 3.27 new text begin offers of settlement, and entering into settlement agreements. new text end 3.28     new text begin (d) The state court administrator shall forward documentation of salaries, expenses, new text end 3.29 new text begin and administrative costs under this subdivision to the commissioner of finance for new text end 3.30 new text begin payment of those amounts. new text end 3.31     new text begin (e) Members of the panel and employees and consultants acting under the direction new text end 3.32 new text begin of the panel are absolutely immune from civil liability for any act or omission occurring new text end 3.33 new text begin within the scope of the performance of their duties under this section. new text end 3.34     new text begin Subd. 4. new text end new text begin Claims; consideration, settlement, and payment. new text end new text begin (a) The panel shall new text end 3.35 new text begin consider claims, make offers of settlement, and enter into settlement agreements with new text end 3.36 new text begin victims as provided in this section. In order to be eligible to receive an offer of settlement new text end 4.1 new text begin or enter into a settlement agreement under this section, a victim must file a claim with the new text end 4.2 new text begin panel by October 1, 2008. Any offer of settlement must be made by April 1, 2009. new text end 4.3     new text begin (b) The amount of an offer of settlement under this section must be based on the new text end 4.4 new text begin total damages incurred by the victim, less: new text end 4.5     new text begin (1) a collateral source reduction calculated in the manner provided for in Minnesota new text end 4.6 new text begin Statutes, section 548.36; new text end 4.7     new text begin (2) any payment made to the victim from the emergency relief fund; and new text end 4.8     new text begin (3) any payments made or required to be made to the victim by a third-party new text end 4.9 new text begin tortfeasor under the terms of an existing settlement or other agreement with the victim new text end 4.10 new text begin or a final judgment in favor of the victim concerning claims of the victim that relate to, new text end 4.11 new text begin involve, or arise out of the bridge collapse. new text end 4.12     new text begin The amount of an offer of settlement or payment required by a settlement agreement new text end 4.13 new text begin must not exceed $400,000 per victim. Notwithstanding Minnesota Statutes, section 3.736, new text end 4.14 new text begin subdivision 4, clause (e), there is no limit on the total amount of payments made to all new text end 4.15 new text begin victims under this section, subject to the availability of appropriations for this purpose. new text end 4.16     new text begin (c) A victim who accepts an offer of settlement from the panel must agree in writing new text end 4.17 new text begin and in a form developed by the panel to release the state and every municipality of this new text end 4.18 new text begin state and their employees from liability for damages arising from the bridge collapse and new text end 4.19 new text begin to cooperate with the state in pursuing claims the state may have against any other party. new text end 4.20 new text begin The panel shall consult with the attorney general in preparing the form. Execution of the new text end 4.21 new text begin release by the victim extinguishes any claim against or liability of the state, a municipality, new text end 4.22 new text begin and their employees for damages asserted by a spouse or other family member of a victim new text end 4.23 new text begin based on payments made or services provided to or on behalf of the victim for damages or new text end 4.24 new text begin injury that relates to, involves, or arises out of the bridge collapse. The release must also new text end 4.25 new text begin provide that the victim will indemnify the state, a municipality, and their employees for new text end 4.26 new text begin any claim of contribution or indemnity, or both, made by other persons against the state, a new text end 4.27 new text begin municipality, and their employees and the release will satisfy any judgment obtained by new text end 4.28 new text begin the victim in an action against other persons to the extent of the release, if the claim or new text end 4.29 new text begin judgment relates in any way to a claim of the victim arising from the bridge collapse. The new text end 4.30 new text begin release must provide for the subrogation interest of the state under section 2, subdivision 5. new text end 4.31     new text begin (d) The panel shall promptly forward to the commissioner of finance documentation new text end 4.32 new text begin of each settlement agreement that has been entered into under this section. The new text end 4.33 new text begin commissioner of finance shall pay the agreed amount within 30 days after receiving the new text end 4.34 new text begin documentation and in the order in which the documentation from the panel was received. new text end 5.1     new text begin Subd. 5. new text end new text begin Effect and finality of offers and settlement agreements. new text end new text begin (a) An offer new text end 5.2 new text begin of settlement made to a victim under this section is considered for all purposes to be an new text end 5.3 new text begin offer to the victim to settle a legal claim. new text end 5.4     new text begin (b) A determination by the panel regarding an offer of settlement or settlement new text end 5.5 new text begin agreement is final and not subject to judicial review. new text end 5.6     new text begin Subd. 6. new text end new text begin Records. new text end new text begin Records of the panel related to a claim filed by a victim, an new text end 5.7 new text begin offer of settlement, or an acceptance or rejection of an offer are not accessible to the new text end 5.8 new text begin public except for: new text end 5.9     new text begin (1) the name of the victim; and new text end 5.10     new text begin (2) the terms of any written settlement agreement between the victim and the state. new text end 5.11     new text begin Subd. 7. new text end new text begin Election to proceed in district court. new text end new text begin (a) A victim may elect not to file new text end 5.12 new text begin a claim with the panel or not to accept an offer of settlement from the panel. A victim new text end 5.13 new text begin who elects not to file a claim with the panel or not to accept an offer of settlement has not new text end 5.14 new text begin waived any legal rights that may be asserted against the state or a municipality or their new text end 5.15 new text begin employees and may proceed with a claim in district court. new text end 5.16     new text begin (b) If a victim elects not to accept an offer of settlement, the state or a municipality or new text end 5.17 new text begin their employees may not use any data provided by the victim to the panel in a subsequent new text end 5.18 new text begin legal proceeding. The state or a municipality or their employees may obtain information, new text end 5.19 new text begin including data provided to the panel, through discovery or other legal processes. new text end 5.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 5.21    Sec. 2. new text begin EFFECT OF SPECIAL COMPENSATION PROCESS; RELATIONSHIP new text end 5.22 new text begin TO OTHER LAW. new text end 5.23     new text begin Subdivision 1. new text end new text begin No state liability or duty created. new text end new text begin The establishment of the special new text end 5.24 new text begin compensation process under section 1 and the emergency relief fund, and an offer of new text end 5.25 new text begin settlement or a settlement agreement, is not an admission of liability by the state or a new text end 5.26 new text begin municipality or their employees and does not establish a duty of the state, a municipality, new text end 5.27 new text begin or their employees to compensate victims. The creation and funding of the compensation new text end 5.28 new text begin process under this act or an offer of settlement or settlement agreement is not admissible new text end 5.29 new text begin in a judicial or administrative proceeding to establish liability or a legal duty. new text end 5.30     new text begin Subd. 2. new text end new text begin Payments as additional compensation. new text end new text begin Payments made under section 1 new text end 5.31 new text begin or from the emergency relief fund are intended to supplement and be in addition to any new text end 5.32 new text begin payments required to be made by a third party under law or contract. Payments made new text end 5.33 new text begin under section 1 or from the emergency relief fund are not a collateral source for purposes new text end 5.34 new text begin of Minnesota Statutes, section 62A.096 or 548.36 or other law providing for the reduction new text end 5.35 new text begin of a damage award or the amount of benefits recoverable by a victim from a third party. new text end 6.1     new text begin Subd. 3. new text end new text begin Payments from other sources. new text end new text begin A person required to make payments, new text end 6.2 new text begin including future payments, to a victim may not eliminate or reduce those payments as a new text end 6.3 new text begin result of compensation paid to the victim under section 1 or from the emergency relief new text end 6.4 new text begin fund or as a result of the victim's release of claims against the state, a municipality, or their new text end 6.5 new text begin employees under section 1. The obligation of any person other than the state to make new text end 6.6 new text begin payments to a victim is primary as compared to any payment made or to be made under new text end 6.7 new text begin section 1 or from the emergency relief fund. The persons referenced in and covered by new text end 6.8 new text begin this subdivision and subdivision 4 include, without limitation: new text end 6.9     new text begin (1) reparation obligors, as defined in Minnesota Statutes, section 65B.43, subdivision new text end 6.10 new text begin 9, whether they are insurers or self-insurers; new text end 6.11     new text begin (2) health plan companies, as defined in Minnesota Statutes, section 62Q.01, new text end 6.12 new text begin subdivision 4, including the Minnesota Comprehensive Health Association created under new text end 6.13 new text begin Minnesota Statutes, section 62E.10; new text end 6.14     new text begin (3) insurance companies, as defined in Minnesota Statutes, section 60A.02, new text end 6.15 new text begin subdivision 4; new text end 6.16     new text begin (4) self-insured pools of political subdivisions organized under Minnesota Statutes, new text end 6.17 new text begin section 471.617 or 471.981, including service cooperatives pools organized under new text end 6.18 new text begin Minnesota Statutes, section 123A.21; new text end 6.19     new text begin (5) risk retention groups, as defined in Minnesota Statutes, section 60E.02, new text end 6.20 new text begin subdivision 12; new text end 6.21     new text begin (6) joint self-insurance plans governed by Minnesota Statutes, chapter 60F; new text end 6.22     new text begin (7) workers' compensation insurers and private self-insurers, as defined in Minnesota new text end 6.23 new text begin Statutes, section 79.01; new text end 6.24     new text begin (8) the Minnesota Life and Health Insurance Guaranty Association governed by new text end 6.25 new text begin Minnesota Statutes, chapter 61B; new text end 6.26     new text begin (9) the Minnesota Insurance Guaranty Association governed by Minnesota Statutes, new text end 6.27 new text begin chapter 60C; new text end 6.28     new text begin (10) the Minnesota Joint Underwriting Association governed by Minnesota Statutes, new text end 6.29 new text begin chapter 62I; new text end 6.30     new text begin (11) all insurers providing credit life, credit accident and health, and credit new text end 6.31 new text begin involuntary unemployment insurance under Minnesota Statutes, chapter 62B, but also new text end 6.32 new text begin including those coverages written in connection with real estate mortgage loans and those new text end 6.33 new text begin provided to borrowers at no additional cost; new text end 6.34     new text begin (12) the Minnesota unemployment insurance program provided under Minnesota new text end 6.35 new text begin Statutes, chapter 268; new text end 7.1     new text begin (13) coverage offered by the state under medical assistance, general assistance new text end 7.2 new text begin medical care, and MinnesotaCare; and new text end 7.3     new text begin (14) any other plan providing health, life, disability income, or long-term care new text end 7.4 new text begin coverage. new text end 7.5     new text begin Subd. 4. new text end new text begin No third-party subrogation or recovery. new text end new text begin (a) A person who has paid new text end 7.6 new text begin benefits or compensation to or on behalf of a victim does not have a subrogation or other new text end 7.7 new text begin right to recover those benefits or compensation by making a claim, or recovering from new text end 7.8 new text begin payments made, under section 1 or from the emergency relief fund. new text end 7.9     new text begin (b) Following a settlement agreement under section 1, any person claiming a new text end 7.10 new text begin subrogation interest against the amount to be paid by the state has 60 days in which to new text end 7.11 new text begin provide notice to the state and the victim of its intent to assert its interest, during which new text end 7.12 new text begin time the commissioner of finance must not make the payment. The subrogation claim new text end 7.13 new text begin is waived if the notice is not provided by the deadline. If no notice is received by the new text end 7.14 new text begin deadline, the commissioner of finance shall make the payment. If a notice of claim new text end 7.15 new text begin is received, the commissioner shall withhold the payment until the subrogee abandons new text end 7.16 new text begin or waives the subrogation claim. new text end 7.17     new text begin Subd. 5. new text end new text begin Reimbursement of state; right of subrogation. new text end new text begin (a) The state is entitled new text end 7.18 new text begin to recover from any third party, including an agent, contractor, or vendor retained by new text end 7.19 new text begin the state, for payments made from the emergency relief fund or under section 1 to the new text end 7.20 new text begin extent the third party caused or contributed to the bridge collapse. The state may seek new text end 7.21 new text begin reimbursement from, or assert subrogation rights against, a victim only to the extent that new text end 7.22 new text begin total payments received by the victim from the emergency relief fund and under section new text end 7.23 new text begin 1 and from third parties for damages that relate to, involve, or arise out of the bridge new text end 7.24 new text begin collapse, exceed the total damages incurred by the victim as determined by the panel new text end 7.25 new text begin under section 1, subdivision 4. new text end 7.26     new text begin (b) The state is subrogated to all potential claims against third-party tortfeasors of new text end 7.27 new text begin a victim receiving payment from the emergency relief fund or under section 1 to the new text end 7.28 new text begin extent the claims relate to, involve, or arise out of the bridge collapse. The subrogation new text end 7.29 new text begin right of the state under this subdivision is limited to the amount paid to the victim from the new text end 7.30 new text begin emergency relief fund and under section 1. The rights of the state under this subdivision new text end 7.31 new text begin are in addition to other remedies, claims, and rights relating to the bridge collapse that the new text end 7.32 new text begin state may have against other persons for the recovery of money or to obtain other relief. new text end 7.33     new text begin Subd. 6. new text end new text begin Amounts not considered for purposes of limit on government tort new text end 7.34 new text begin liability. new text end new text begin Payments made to victims under section 1 or from the emergency relief fund new text end 7.35 new text begin are not to be considered in calculating the limit on tort claims in civil actions against the new text end 7.36 new text begin state arising out of the bridge collapse for purposes of Minnesota Statutes, section 3.736, new text end 8.1 new text begin subdivision 4, clause (e), or a municipality arising out of the bridge collapse for purposes new text end 8.2 new text begin of Minnesota Statutes, section 466.04, subdivision 1, clause (5). new text end 8.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 8.4    Sec. 3. new text begin APPROPRIATIONS. new text end 8.5     new text begin (a) $25,000,000 is appropriated from the general fund to the commissioner of new text end 8.6 new text begin finance to make payments under settlement agreements entered into by the panel under new text end 8.7 new text begin section 1. This appropriation is available until June 30, 2010. The legislature intends to new text end 8.8 new text begin fully fund the settlement agreements. If it appears to the commissioner of finance that new text end 8.9 new text begin this appropriation may be insufficient to pay all agreed upon settlement amounts, the new text end 8.10 new text begin commissioner shall promptly report to the chairs of the senate Committee on Finance and new text end 8.11 new text begin the house of representatives Committee on Ways and Means the estimated amount of the new text end 8.12 new text begin insufficiency and the estimated date when the appropriation will be exhausted. new text end 8.13     new text begin (b) $750,000 is appropriated from the general fund to the commissioner of finance new text end 8.14 new text begin to pay salaries, expenses, and administrative costs associated with making offers of new text end 8.15 new text begin settlement and entering into settlement agreements under section 1. This appropriation new text end 8.16 new text begin is available until June 30, 2009. new text end 8.17     new text begin (c) $680,000 is appropriated from the general fund to the commissioner of finance new text end 8.18 new text begin for a grant to Pillsbury United Communities in Minneapolis, to allow Waite House new text end 8.19 new text begin in Minneapolis to provide comprehensive services to youth and families of youth who new text end 8.20 new text begin were on a school bus on the I-35W bridge when the bridge collapsed. Services paid for new text end 8.21 new text begin with this appropriation must not be services that could have been funded by settlement new text end 8.22 new text begin payments made to victims. Waite House must submit to the commissioner of finance new text end 8.23 new text begin a budget showing the services that will be provided with this appropriation. Upon new text end 8.24 new text begin approval of the budget, the commissioner must make $235,000 of this appropriation new text end 8.25 new text begin available immediately, must make $215,000 available on August 1, 2008, and must new text end 8.26 new text begin make the remainder of the appropriation available on August 1, 2009. The appropriation new text end 8.27 new text begin is available until spent. new text end 8.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end