SF 1882

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to civil actions; limiting certain liability
of certain nonprofit providers of services to adults
and children with mental retardation and related
conditions and certain nonprofit corporations formed
to provide homes for children; proposing coding for
new law in Minnesota Statutes, chapter 604A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [604A.305] LIMITED LIABILITY FOR CERTAIN
NONPROFIT PROVIDERS OF SERVICES TO MENTALLY RETARDED PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Liability limits. new text end

new text begin (a) This section
applies to a nonprofit corporation that provides day training
and habilitation services for adults with mental retardation and
related conditions, that provides daytime developmental
achievement services for children with mental retardation and
related conditions, or that is formed and maintained for the
purposes specified in section 317A.907, subdivision 1. Such a
nonprofit corporation is subject to the same liability limits
applicable to a municipality under section 466.04, with respect
to claims against the nonprofit corporation arising out of the
care or treatment of the individuals or the activities of the
individuals while in the care of the nonprofit corporation, if
the nonprofit corporation procures insurance against liability
for the claims described under this section, which insurance is
in an amount equal to the amount specified in section 466.04.
This section does not apply if the conduct of the nonprofit
corporation was intentional or grossly negligent.
new text end

new text begin (b) For purposes of this section, "nonprofit corporation"
means a corporation organized and existing under, or whose
existence is continued under, chapter 317A, if the articles or
bylaws of the corporation provide that (i) board members of the
corporation must be confirmed by the county board of the county
where the corporation is located, and (ii) the assets of the
corporation revert to the county where the corporation is
located if the corporation is dissolved or ceases to provide the
programs described in paragraph (a).
new text end

new text begin Subd. 2. new text end

new text begin Effect of excess liability insurance.
new text end

new text begin Notwithstanding subdivision 1, if the nonprofit corporation has
insurance coverage in excess of the liability limits under
section 466.04, the procurement of that insurance constitutes a
waiver of those limits, but only to the extent that valid and
collectible insurance exceeds those limits and covers a claim.
The purchase of excess insurance has no other effect on the
liability of the nonprofit corporation.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective August 1, 2005, and applies to
claims arising from incidents occurring on or after that date.
new text end