HF4653

Purpose

• Modernize and increase the state’s indemnification (tort claim) protections for the state and its employees acting within the scope of their employment.
• Align limits with historical changes and add an automatic inflation-based increase each year.
• Introduce a process to fairly divide payments when multiple claimants are involved and the total exceeds the limit.
• Create specific caps for claims arising from a single incident, including a special carve-out for nonprofit outdoor recreation activities.
• Repeal certain older provisions related to these indemnifications.

Main Provisions

• Scope of liability

  • The state and its employees are liable for tort claims, but total liability is capped according to a schedule that depends on when the claim arises and whether the claim is for death by wrongful act or omission versus other damages.

• Total liability limits (per claim, by time period)

  • Claims arising before August 1, 2007:
  • Death by wrongful act or omission: 300,000
  • Any other claim: 300,000
  • Claims arising on/after August 1, 2007 and before July 1, 2009:
  • Death: 400,000
  • Other: 400,000
  • Claims arising on/after July 1, 2009 and before July 1, 2019:
  • Death: 500,000
  • Other: 500,000
  • Claims arising on or after July 1, 2019:
  • Death by wrongful act or omission: 5,000,000
  • Any other claim: 1,000,000

• Per-incident (single occurrence) limits for multiple claims

  • For claims arising in different time brackets, the law sets per-incident caps for any number of claims arising from a single occurrence:
  • January 1, 1998 – December 31, 1999: 750,000
  • January 1, 2000 – December 31, 2007: 1,000,000
  • January 1, 2008 – June 30, 2009: 1,200,000
  • July 1, 2009 – June 30, 2019: 1,500,000
  • On or after July 1, 2009 (death): 15,000,000 for death; 2,500,000 for other claims
  • Special nonprofit outdoor recreation exception (per single occurrence): 1,000,000 for a claim involving a nonprofit organization engaged in or administering outdoor recreational activities funded by the state or operating under a state agency permit.

• Apportionment among multiple claimants

  • If the total amount awarded or settled for multiple claimants exceeds the applicable per-claim or per-incident limit, any party may ask a district court to apportion shares among claimants.
  • The court would allocate shares proportionally based on each claimant’s award relative to the total awards for that incident.

• What counts toward the limit

  • The limits apply to damages including loss of services or loss of support arising from the same tort.

• Inflation adjustment

  • The limits will increase annually, with adjustments tied to the Federal Reserve inflation rate calculated on December 31 for the following year.

• Repeals

  • The act repeals certain existing sections related to these indemnification provisions (specific old subdivisions).

Significant Changes from Existing Law

• Substantially higher and time-graded caps for death vs. other tort claims, with a large jump to 5,000,000 for death claims after 2019.
• New per-incident (single occurrence) caps that escalate over time, culminating in very high death caps (15,000,000) and substantial but lower caps for other claims (2,500,000), plus a separate nonprofit outdoor recreation cap of 1,000,000.
• Introduced an explicit mechanism for apportioning funds among multiple claimants when total awards exceed the limit.
• Explicit inclusion of loss of services or loss of support within the cap for a given tort.
• Mandatory annual inflation-based increases to the stated limits.
• Repeal of prior related provisions, updating the statutory framework for indemnification.

Relevant Terms - tort claim - indemnification - death by wrongful act or omission - limits / caps - total liability - state and its employees - within the scope of their employment - claims arising before/after specific dates - claims arising out of a single occurrence / per-incident cap - apportionment - district court - loss of services - loss of support - inflation adjustment / Federal Reserve rate - nonprofit organization / outdoor recreational activities - permit issued by an agency or department of the state - repeal of statutes (3.736 subdivisions 5-6; 466.05.1.6)