1.1 	A bill for an act
1.2 	relating to civil actions; regulating health care
1.3 	provider actions; limiting certain damages; proposing
1.4 	coding for new law in Minnesota Statutes, chapter 604.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [604.111] HEALTH CARE PROVIDER ACTIONS; LIMITS
1.7 	ON DAMAGES.
1.8 		Subdivision 1.Definitions. (a) For the purposes of this
1.9 	section, the terms in paragraphs (b) to (d) have the meanings
1.10 	given them.
1.11 	(b) "Economic loss" means all harm for which damages are
1.12 	recoverable, other than noneconomic losses.
1.13 	(c) "Health care provider" has the meaning given in section
1.14 	541.076, paragraph (a), except that health care provider also
1.15 	includes a physician assistant registered under chapter 147A and
1.16 	ambulance services, medical directors, and personnel regulated
1.17 	under chapter 144E.
1.18 	(d) "Noneconomic loss" means all nonpecuniary harm for
1.19 	which damages are recoverable, including, but not limited to,
1.20 	pain, disability, disfigurement, embarrassment, emotional
1.21 	distress, and loss of consortium.
1.22 		Subd. 2.Limitation. (a) In an action for injury or
1.23 	death against a health care provider alleging malpractice,
1.24 	error, mistake, or failure to cure, whether based in contract or
1.25 	tort, the amount of damages awarded for noneconomic losses must
2.1 	not exceed $250,000, regardless of the number of parties against
2.2 	whom the action is brought or the number of separate claims or
2.3 	actions brought with respect to the same occurrence.
2.4 	(b) The limitation imposed by this subdivision must not be
2.5 	disclosed to the trier of fact by any person at trial.
2.6 		Subd. 3.Findings. (a) A court in an action tried
2.7 	without a jury shall make a finding as to noneconomic loss
2.8 	without regard to the limit under subdivision 2.  If noneconomic
2.9 	loss in excess of the limit is found, the court shall make any
2.10 	reduction required under this section and shall award as damages
2.11 	for noneconomic loss the lesser of the reduced amount or the
2.12 	limit.
2.13 	(b) If an action is before a jury, the jury shall make a
2.14 	finding as to noneconomic loss without regard to the limit under
2.15 	subdivision 2.  If the jury finds that noneconomic loss exceeds
2.16 	the limit, the court shall make any reduction required under
2.17 	this section and shall award as damages for noneconomic loss the
2.18 	lesser of the reduced amount or the limit.
2.19 		Subd. 4.Punitive damages limited. (a) Punitive,
2.20 	exemplary, and similar damages recoverable against a health care
2.21 	provider in a cause of action described in subdivision 2 must
2.22 	not exceed $250,000.  The jury must not be informed of this
2.23 	limitation.
2.24 	(b) All damages described in paragraph (a) must be paid
2.25 	directly to the Minnesota Comprehensive Health Association
2.26 	created under section 62E.10, subdivision 1, to be used for the
2.27 	purpose of reducing its assessments on its members.
2.28 	(c) Notwithstanding paragraph (a), a private nonprofit
2.29 	hospital licensed under sections 144.50 to 144.56 is not liable
2.30 	for punitive, exemplary, or similar damages, in an action
2.31 	described in subdivision 2.

2.32 	Sec. 2. EFFECTIVE DATE.
 2.33 	Section 1 is effective August 1, 2005, and applies to
2.34 	causes of actions arising from incidents occurring on or after
2.35 	that date.