1.1                          A bill for an act 
  1.2             relating to civil actions; modifying the limitations 
  1.3             provision governing health provider actions; amending 
  1.4             Minnesota Statutes 1997 Supplement, section 541.07; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 541.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.9   541.07, is amended to read: 
  1.10     541.07 [TWO- OR THREE-YEAR LIMITATIONS.] 
  1.11     Except where the Uniform Commercial Code, this section, 
  1.12  section 148A.06, or section 541.073, or 541.076 otherwise 
  1.13  prescribes, the following actions shall be commenced within two 
  1.14  years: 
  1.15     (1) for libel, slander, assault, battery, false 
  1.16  imprisonment, or other tort, resulting in personal injury, and 
  1.17  all actions against physicians, surgeons, dentists, occupational 
  1.18  therapists, other health care professionals as defined in 
  1.19  section 145.61, and veterinarians as defined in chapter 156, 
  1.20  hospitals, sanitariums, for malpractice, error, mistake or 
  1.21  failure to cure, whether based on contract or tort; provided a 
  1.22  counterclaim may be pleaded as a defense to any action for 
  1.23  services brought by a physician, surgeon, dentist, occupational 
  1.24  therapists, or other health care professional or veterinarian, 
  1.25  hospital or sanitarium, after the limitations herein described 
  1.26  notwithstanding it is barred by the provisions of this chapter, 
  2.1   if it was the property of the party pleading it at the time it 
  2.2   became barred and was not barred at the time the claim sued on 
  2.3   originated, but no judgment thereof except for costs can be 
  2.4   rendered in favor of the party so pleading it; 
  2.5      (2) upon a statute for a penalty or forfeiture, except as 
  2.6   provided in sections 541.074 and 541.075; 
  2.7      (3) for damages caused by a dam, other than a dam used for 
  2.8   commercial purposes; but as against one holding under the 
  2.9   preemption or homestead laws, the limitations shall not begin to 
  2.10  run until a patent has been issued for the land so damaged; 
  2.11     (4) against a master for breach of an indenture of 
  2.12  apprenticeship; the limitation runs from the expiration of the 
  2.13  term of service; 
  2.14     (5) for the recovery of wages or overtime or damages, fees 
  2.15  or penalties accruing under any federal or state law respecting 
  2.16  the payment of wages or overtime or damages, fees or penalties 
  2.17  except, that if the employer fails to submit payroll records by 
  2.18  a specified date upon request of the department of labor and 
  2.19  industry or if the nonpayment is willful and not the result of 
  2.20  mistake or inadvertence, the limitation is three years.  (The 
  2.21  term "wages" means all remuneration for services or employment, 
  2.22  including commissions and bonuses and the cash value of all 
  2.23  remuneration in any medium other than cash, where the 
  2.24  relationship of master and servant exists and the term "damages" 
  2.25  means single, double, or treble damages, accorded by any 
  2.26  statutory cause of action whatsoever and whether or not the 
  2.27  relationship of master and servant exists); 
  2.28     (6) for damages caused by the establishment of a street or 
  2.29  highway grade or a change in the originally established grade; 
  2.30     (7) against the person who applies the pesticide for injury 
  2.31  or damage to property resulting from the application, but not 
  2.32  the manufacture or sale, of a pesticide. 
  2.33     Sec. 2.  [541.076] [HEALTH CARE PROVIDER ACTIONS.] 
  2.34     An action by a patient or former patient against a health 
  2.35  care provider alleging malpractice, error, mistake, or failure 
  2.36  to cure, whether based on a contract or tort, must be commenced 
  3.1   within two years after the patient or former patient discovers 
  3.2   or reasonably should have discovered the injury, cause, and 
  3.3   alleged malpractice, error, mistake, or failure to cure.  In no 
  3.4   event shall an action under this section be brought more than 
  3.5   four years after the date on which the limitations period would 
  3.6   have begun to run under section 541.07, clause (1), had the 
  3.7   action been subject to that provision. 
  3.8      Further, a counterclaim may be pleaded as a defense to any 
  3.9   action for services brought by a physician, surgeon, dentist, 
  3.10  occupational therapist, or other health care professional or 
  3.11  veterinarian, hospital, or sanitarium, after the limitations 
  3.12  described in this section, notwithstanding it is barred by the 
  3.13  provisions of this chapter, if it was the property of the party 
  3.14  pleading it at the time it became barred and was not barred at 
  3.15  the time the claim sued or originated, but no judgment thereof 
  3.16  except for costs can be rendered in favor of the party so 
  3.17  pleading it. 
  3.18     For purposes of this section "health care provider" means a 
  3.19  physician, surgeon, dentist, occupational therapist, other 
  3.20  health care professional as defined in section 145.61; 
  3.21  veterinarian as defined in chapter 156; hospital; or sanitarium. 
  3.22     Sec. 3.  [EFFECTIVE DATE; APPLICATION.] 
  3.23     Section 2 is effective August 1, 1998, and applies to 
  3.24  actions commenced on or after that date.