1.1 	A bill for an act
1.2 	relating to transportation; providing an alternative compensation and settlement 
1.3 	process for victims of the I-35W bridge collapse; changing the effective date of 
1.4 	an increase in individual damage caps for state tort claims; appropriating money;
1.5 	amending Minnesota Statutes 2006, section 3.736, subdivision 4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	ARTICLE 1
1.8 	STATE 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 
1.11 	scope 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 August
1.14 	1, 2008 2007;
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 August
1.17 	1, 2008 2007, 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 
1.21 	arising 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 
1.23 	claims 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 
2.2 	claims 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 
2.4 	claims arising on or after July 1, 2009.
2.5 	If the amount awarded to or settled upon multiple claimants exceeds the applicable 
2.6 	limit under clause  (d), (e), (f), or  (g), any party may apply to the district court to apportion 
2.7 	to each claimant a proper share of the amount available under the applicable limit under 
2.8 	clause  (d), (e), (f), or  (g). The share apportioned to each claimant shall be in the proportion 
2.9 	that the ratio of the award or settlement bears to the aggregate awards and settlements for 
2.10 	all claims arising out of the occurrence.
2.11 	The limitation imposed by this subdivision on individual claimants includes damages 
2.12 	claimed for loss of services or loss of support arising out of the same tort.

2.13 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2007.

2.14 	ARTICLE 2
2.15 	I-35W BRIDGE COLLAPSE

2.16 	Section 1. COMPENSATION FOR VICTIMS OF I-35W BRIDGE COLLAPSE.
 2.17 		Subdivision 1.Findings. (a) The legislature finds that the collapse of the Interstate 
2.18 	Highway 35W bridge over the Mississippi River in Minneapolis on August 1, 2007, 
2.19 	was a catastrophe of historic proportions. The bridge was the third-busiest in the state, 
2.20 	carrying over 140,000 cars per day. Its collapse killed 13 people and injured more than 
2.21 	100. No other state-owned structure has ever fallen with such devastating physical and 
2.22 	psychological impact on so many. 
2.23 	(b) The establishment of a compensation process for victims of the bridge collapse 
2.24 	furthers the public interest by providing a remedy for victims while avoiding the 
2.25 	uncertainty and expense of potentially complex and protracted litigation to resolve the 
2.26 	issue of the liability of the state and its employees for damages incurred by victims.
2.27 	(c) These findings are not an admission of liability of the state for damages caused 
2.28 	by the bride collapse.
2.29 		Subd. 2.Definitions. For purposes of this article:
2.30 	(a) "Damages" means damages that are compensable under state tort law and 
2.31 	damages for wrongful death that are compensable under Minnesota Statutes, section 
2.32 	573.02. Damages do not include punitive damages or attorney fees.
2.33 	(b) "Emergency relief fund" means the I-35W bridge emergency relief fund created 
2.34 	by the state on November 30, 2007.
3.1 	(c) "Municipality" has the meaning given in Minnesota Statutes, section 466.01.
3.2 	(d) "Panel" means the special master panel created under subdivision 3.
3.3 	(e) "State" has the meaning given in Minnesota Statutes, section 3.732.
3.4 	(f) "Victim" means a natural person who was present on the I-35W bridge at the 
3.5 	time of the collapse. Victim also includes:
3.6 	(1) the parent or legal guardian of a victim who is under 18 years of age;
3.7 	(2) a legally appointed representative of a victim; or
3.8 	(3) the surviving spouse or next of kin of a victim who would be entitled to bring an 
3.9 	action under Minnesota Statutes, section 573.02.
3.10 		Subd. 3.Special master panel; administration. (a) The chief justice of the 
3.11 	Supreme Court shall establish a special master panel to consider claims, make offers of 
3.12 	settlement, and enter into settlement agreements with victims on behalf of the state. The 
3.13 	panel must consist of three attorneys, at least one of whom must be a retired judge of the 
3.14 	appellate or district courts of this state. Nonjudicial members of the panel must have 
3.15 	experience in legal issues involving the settlement of tort claims and the determination of 
3.16 	damages. The chief justice shall designate a member of the panel who is a retired judge 
3.17 	to serve as chair of the panel. The chief justice shall determine the pay and expenses to 
3.18 	be received by the panel. 
3.19 	(b) Within the limits of available appropriations, the state court administrator, 
3.20 	in consultation with the panel, shall hire employees necessary to assist the panel in 
3.21 	performing its duties under this section. Employees are in the unclassified state civil 
3.22 	service. The panel may also use current state employees or consultants who are under a 
3.23 	contract with the state to assist the panel in processing claims under this section.
3.24 	(c) The panel may adopt procedures, rules, and forms for considering claims, making 
3.25 	offers of settlement, and entering into settlement agreements. 
3.26 	(d) The state court administrator shall forward documentation of salaries, expenses, 
3.27 	and administrative costs under this subdivision to the commissioner of finance for 
3.28 	payment of those amounts.
3.29 	(e) Members of the panel and employees and contractors acting under the direction 
3.30 	of the panel are absolutely immune from civil liability for any act or omission occurring 
3.31 	within the scope of the performance of their duties under this section.
3.32 		Subd. 4.Claims; consideration, settlement, and payment. (a) The panel shall 
3.33 	consider claims, make offers of settlement, and enter into settlement agreements with 
3.34 	victims as provided in this section. In order to be eligible to receive an offer of settlement 
3.35 	or enter into a settlement agreement under this section, a victim must file a claim with the 
3.36 	panel by October 1, 2008. Any offer of settlement must be made by April 1, 2009.
4.1 	(b)  The amount of an offer of settlement under this section must be based on the 
4.2 	total damages incurred by the victim, less:
4.3 	(1) a collateral source reduction calculated in the manner provided for in Minnesota 
4.4 	Statutes, section 548.36; 
4.5 	(2) any payment made to the victim from the emergency relief fund; and
4.6 	(3) any payments made or required to be made to the victim by a third-party 
4.7 	tortfeasor under the terms of an existing settlement or other agreement with the victim 
4.8 	or a final judgment in favor of the victim concerning claims of the victim that relate to, 
4.9 	involve, or arise out of the bridge collapse.
4.10 	The amount of an offer of settlement or payment required by a settlement agreement 
4.11 	must not exceed $400,000 per victim. Notwithstanding Minnesota Statutes, section 3.736, 
4.12 	subdivision 4, clause (e), there is no limit on the total amount of payments made to all 
4.13 	victims under this section, subject to the availability of appropriations for this purpose.
4.14 	(c) A victim who accepts an offer of settlement from the panel must agree in writing 
4.15 	and in a form developed by the panel to release the state and every municipality of this 
4.16 	state and their employees from liability for damages arising from the bridge collapse and 
4.17 	to cooperate with the state in pursuing claims the state may have against any other party. 
4.18 	The release must also provide that the victim will indemnify the state, a municipality, 
4.19 	and their employees for any claim of contribution or indemnity, or both, made by other 
4.20 	persons against the state, a municipality, and their employees and the release will satisfy 
4.21 	any judgment obtained by the victim in an action against other persons to the extent of 
4.22 	the release, if the claim or judgment relates in any way to a claim of the victim arising 
4.23 	from the bridge collapse. The release must provide for the subrogation interest of the state 
4.24 	under section 2, subdivision 5. 
4.25 	(d) The panel shall promptly forward to the commissioner of finance documentation 
4.26 	of each settlement agreement that has been entered into under this section. The 
4.27 	commissioner of finance shall pay the agreed amount within 30 days after receiving the 
4.28 	documentation and in the order in which the documentation from the panel was received.
4.29 		Subd. 5.Effect and finality of offers and settlement agreements. (a) An offer 
4.30 	of settlement made to a victim under this section is considered for all purposes to be an 
4.31 	offer to the victim to settle a legal claim.
4.32 	(b) A determination by the panel regarding an offer of settlement or settlement 
4.33 	agreement is final and not subject to judicial review.
4.34 		Subd. 6.Records. Records of the panel related to a claim filed by a victim, an 
4.35 	offer of settlement, or an acceptance or rejection of an offer are not accessible to the 
4.36 	public except for:
5.1 	(1) the name of the victim; and
5.2 	(2) the terms of any written settlement agreement between the victim and the state.
5.3 		Subd. 7.Election to proceed in district court. (a) A victim may elect not to file 
5.4 	a claim with the panel or not to accept an offer of settlement from the panel. A victim 
5.5 	who elects not to file a claim with the panel or not to accept an offer of settlement has 
5.6 	not waived any legal rights that may be asserted against the state or a municipality and 
5.7 	may proceed with a claim in district court.
5.8 	(b) If a victim elects not to accept an offer of settlement, the state or a municipality 
5.9 	may not use any data provided by the victim to the panel in a subsequent legal proceeding. 
5.10 	The state or a municipality may obtain information, including data provided to the panel, 
5.11 	through discovery or other legal processes.

5.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.13 	Sec. 2. EFFECT OF SPECIAL COMPENSATION PROCESS; RELATIONSHIP 
5.14 	TO OTHER LAW.
 5.15 		Subdivision 1.No state liability or duty created. The establishment of the special 
5.16 	compensation process under section 1 and the emergency relief fund, and an offer of 
5.17 	settlement or a settlement agreement, is not an admission of liability by the state or a 
5.18 	municipality and their employees and does not establish a duty of the state, a municipality, 
5.19 	or their employees to compensate victims. The creation and funding of the compensation 
5.20 	process under this act or an offer of settlement or settlement agreement is not admissible 
5.21 	in a judicial or administrative proceeding to establish liability or a legal duty.
5.22 		Subd. 2.Payments as additional compensation. Payments made under section 1 
5.23 	or from the emergency relief fund are intended to supplement and be in addition to any 
5.24 	payments required to be made by a third party under law or contract. Payments made 
5.25 	under section 1 are not a collateral source for purposes of Minnesota Statutes, section 
5.26 	62A.096 or 548.36 or other law providing for the reduction of a damage award or the 
5.27 	amount of benefits recoverable by a victim from a third party.
5.28 		Subd. 3.Payments from other sources.  A person required to make payments, 
5.29 	including future payments, to a victim may not eliminate or reduce those payments as a 
5.30 	result of compensation paid to the victim under section 1 or from the emergency relief 
5.31 	fund or as a result of the victim's release of claims against the state, a municipality, or their 
5.32 	employees under section 1. The obligation of any person or entity other than the state to 
5.33 	make payments to a victim is primary as compared to any payment made or to be made 
5.34 	under section 1 or from the emergency relief fund. The persons and entities referenced in 
5.35 	and covered by this subdivision and subdivision 4 include, without limitation:
6.1 	(1) reparation obligors, as defined in Minnesota Statutes, section 65B.43, subdivision 
6.2 	9, whether they are insurers or self-insurers;
6.3 	(2) health plan companies, as defined in Minnesota Statutes, section 62Q.01, 
6.4 	subdivision 4, including the Minnesota Comprehensive Health Association created under 
6.5 	Minnesota Statutes, section 62E.10;
6.6 	(3) insurance companies, as defined in Minnesota Statutes, section 60A.02, 
6.7 	subdivision 4;
6.8 	(4) self-insured pools of political subdivisions organized under Minnesota Statutes, 
6.9 	section 471.617 or 471.981, including service cooperatives pools organized under 
6.10 	Minnesota Statutes, section 123A.21;
6.11 	(5) risk retention groups, as defined in Minnesota Statutes, section 60E.02, 
6.12 	subdivision 12;
6.13 	(6) joint self-insurance plans governed by Minnesota Statutes, chapter 60F;
6.14 	(7) workers' compensation insurers and private self-insurers, as defined in Minnesota 
6.15 	Statutes, section 79.01;
6.16 	(8) the Minnesota Life and Health Insurance Guaranty Association governed by 
6.17 	Minnesota Statutes, chapter 61B;
6.18 	(9) the Minnesota Insurance Guaranty Association governed by Minnesota Statutes, 
6.19 	chapter 60C;
6.20 	(10) the Minnesota Joint Underwriting Association governed by Minnesota Statutes, 
6.21 	chapter 62I;
6.22 	(11) all insurers providing credit life, credit accident and health, and credit 
6.23 	involuntary unemployment insurance under Minnesota Statutes, chapter 62B, but also 
6.24 	including those coverages written in connection with real estate mortgage loans and those 
6.25 	provided to borrowers at no additional cost;
6.26 	(12) the Minnesota unemployment insurance program provided under Minnesota 
6.27 	Statutes, chapter 268;
6.28 	(13) coverage offered by the state under medical assistance, general assistance 
6.29 	medical care, and MinnesotaCare; and
6.30 	(14) any other plan providing health, life, disability income, or long-term care 
6.31 	coverage.
6.32 		Subd. 4.No third-party subrogation or recovery.  (a) A person who has paid 
6.33 	benefits or compensation to or on behalf of a victim does not have a subrogation or other 
6.34 	right to recover those benefits or compensation by making a claim, or recovering from 
6.35 	payments made, under section 1 or from the emergency relief fund. 
7.1 	(b) Following a settlement agreement under section 1, any person or entity claiming 
7.2 	a subrogation interest against the amount to be paid by the state has 60 days in which to 
7.3 	provide notice to the state and the victim of its intent to assert its interest, during which 
7.4 	time the commissioner of finance must not make the payment. The subrogation claim 
7.5 	is waived if the notice is not provided by the deadline. If no notice is received by the 
7.6 	deadline, the commissioner of finance shall make the payment. If a notice of claim is 
7.7 	received, the funds shall remain in escrow until resolution of the subrogation issue. Any 
7.8 	payment to a victim against which a subrogation claim is successfully asserted shall 
7.9 	immediately revert to the state, for further deliberation as to the manner in which to 
7.10 	distribute the payment to the victim.
7.11 		Subd. 5.Third-party reimbursement of state; right of subrogation. (a) The 
7.12 	state is entitled to recover from any third party, including an agent, contractor, or vendor 
7.13 	retained by the state, for payments made from the emergency relief fund or under section 
7.14 	1 to the extent the third party caused or contributed to the bridge collapse.
7.15 	(b) The state is subrogated to all potential claims against third-party tortfeasors of 
7.16 	a victim receiving payment from the emergency relief fund or under section 1 to the 
7.17 	extent the claims relate to, involve, or arise out of the bridge collapse. The subrogation 
7.18 	right of the state under this subdivision is limited to the amount paid to the victim from the 
7.19 	emergency relief fund and under section 1. The rights of the state under this subdivision 
7.20 	are in addition to other remedies, claims, and rights relating to the bridge collapse that the 
7.21 	state may have against other persons for the recovery of money.
7.22 		Subd. 6.Amounts not considered for purposes of limit on government tort 
7.23 	liability. Payments made to victims under section 1 or from the emergency relief fund 
7.24 	are not to be considered in calculating the limit on tort claims in civil actions against the 
7.25 	state arising out of the bridge collapse for purposes of Minnesota Statutes, section 3.736, 
7.26 	subdivision 4, clause (e), or a municipality arising out of the bridge collapse for purposes 
7.27 	of Minnesota Statutes, section 466.04, subdivision 1, clause (5).

7.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.29 	Sec. 3. APPROPRIATIONS.
 7.30 	(a) $....... is appropriated from the ....... fund to the commissioner of finance to make 
7.31 	payments under settlement agreements entered into by the panel under section 1. This 
7.32 	appropriation is available until June 30, 2010. The legislature intends to fully fund the 
7.33 	settlement agreements. If it appears to the commissioner of finance that this appropriation 
7.34 	may be insufficient to pay all agreed upon settlement amounts, the commissioner shall 
7.35 	promptly report to the chairs of the senate Committee on Finance and the house of 
8.1 	representatives Committee on Ways and Means the estimated amount of the insufficiency 
8.2 	and the estimated date when the appropriation will be exhausted. 
8.3 	(b) $....... is appropriated from the general fund to the commissioner of finance 
8.4 	to pay salaries, expenses, and administrative costs associated with making offers of 
8.5 	settlement and entering into settlement agreements under section 1. This appropriation 
8.6 	is available until June 30, 2009.

8.7 	EFFECTIVE DATE. This section is effective the day following final enactment.