Minnesota Session Laws - 1998, Regular Session

                            CHAPTER 336-S.F.No. 330 
                  An act relating to civil actions; providing limits on 
                  liability of certain private corrections treatment 
                  facilities that receive patients under court or 
                  administrative order; proposing coding for new law in 
                  Minnesota Statutes, chapter 604A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [604A.301] [LIMITED LIABILITY FOR CERTAIN 
        NONPROFIT TREATMENT FACILITIES.] 
           Subdivision 1.  [LIMIT ON AMOUNT OF LIABILITY.] A treatment 
        facility organized as a nonprofit corporation under chapter 317A 
        that accepts individuals for treatment under a court order or an 
        order of the commissioner of corrections as part of an adult or 
        juvenile corrections program is subject to the same liability 
        limits provided for state agencies under section 3.736, 
        subdivision 4, with respect to claims against the facility 
        arising out of the treatment of those individuals or the 
        activities of those individuals while in the care of the 
        program, if the treatment facility procures insurance against 
        liability for claims described under this section, which 
        insurance is in an amount equal to the greater of $500,000 per 
        claim or occurrence or the amounts specified for the state under 
        section 3.736, subdivision 4.  This section does not apply if 
        the conduct of a facility was intentional or grossly negligent. 
           Subd. 2.  [EFFECT OF EXCESS LIABILITY 
        INSURANCE.] Notwithstanding subdivision 1, if a treatment 
        facility has insurance coverage in excess of the liability 
        limits under section 3.736, subdivision 4, 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 treatment facility. 
           Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
           Section 1 is effective August 1, 1998, and applies to 
        claims arising from incidents occurring on or after that date. 
           Presented to the governor March 23, 1998 
           Signed by the governor March 25, 1998, 9:45 a.m.