1.1                          A bill for an act 
  1.2             relating to civil actions; providing limits on certain 
  1.3             liability of certain nonprofit corporations providing 
  1.4             day training and habilitation services for adults with 
  1.5             mental retardation or daytime developmental 
  1.6             achievement center services for children with mental 
  1.7             retardation and related conditions or securing or 
  1.8             maintaining homes for dependent and neglected 
  1.9             children; proposing coding for new law in Minnesota 
  1.10            Statutes, chapter 604A. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [604A.33] [LIMITED LIABILITY FOR CERTAIN 
  1.13  NONPROFIT CORPORATIONS.] 
  1.14     Subdivision 1.  [LIMIT ON AMOUNT OF LIABILITY.] Nonprofit 
  1.15  corporations organized and existing under, or whose existence is 
  1.16  continued under, chapter 317A that:  
  1.17     (1) provide day training and habilitation services for 
  1.18  adults with mental retardation and related conditions under 
  1.19  sections 252.40 to 252.46; 
  1.20     (2) provide daytime developmental achievement services for 
  1.21  children with mental retardation and related conditions; 
  1.22     (3) are residential treatment centers, group homes, or 
  1.23  private child placing agencies governed by Minnesota Rules, 
  1.24  parts 9545.0905 to 9545.1125, 9545.0755 to 9545.0845, or 
  1.25  9545.1410 to 9545.1470; or 
  1.26     (4) are nonprofit corporations formed for the purposes set 
  1.27  forth in section 317A.907, subdivision 1; 
  1.28  are subject to the same liability limits provided for 
  2.1   municipalities under section 466.04 with respect to claims for 
  2.2   liability against the nonprofit corporation arising out of the 
  2.3   care or treatment of, or provision of other authorized services 
  2.4   to, those individuals or the activities of those individuals 
  2.5   while in the care of the nonprofit corporation if the nonprofit 
  2.6   corporation procures insurance against liability for claims 
  2.7   described under this section and the insurance is in an amount 
  2.8   equal to the amounts specified for municipalities under section 
  2.9   466.04. 
  2.10     This section does not apply if the conduct of the nonprofit 
  2.11  corporation was intentional or grossly negligent. 
  2.12     Subd. 2.  [EFFECT OF EXCESS LIABILITY 
  2.13  INSURANCE.] Notwithstanding subdivision 1, if the nonprofit 
  2.14  corporation has insurance coverage in excess of the liability 
  2.15  limits under section 466.04, the procurement of that insurance 
  2.16  constitutes a waiver of those limits but only to the extent that 
  2.17  valid and collectible insurance exceeds those limits and covers 
  2.18  a claim.  The purchase of excess insurance has no other effect 
  2.19  on the liability of the nonprofit corporation. 
  2.20     Subd. 3.  [LIABILITY LIMITS IN CONTRACTS.] No state, 
  2.21  county, or other unit of government that contracts with 
  2.22  nonprofit corporations for the services set forth in subdivision 
  2.23  1 shall require as part of such contract liability limits in 
  2.24  excess of the liability limits under section 466.04. 
  2.25     Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
  2.26     Section 1 is effective July 1, 2003, and applies to claims 
  2.27  for professional liability arising from incidents occurring on 
  2.28  or after that date.