1     
ADJUSTMENT OF LIMITS ON DAMAGES

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jani Iwamoto

5     
House Sponsor: V. Lowry Snow

6     

7     LONG TITLE
8     General Description:
9          This bill modifies a provision relating to the adjustment of limits on damages against
10     governmental entities.
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies the deadline for the Office of the Legislative Fiscal Analyst to
14     communicate biennial adjustments of limits on damages to the state risk manager.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          63G-7-605, as enacted by Laws of Utah 2017, Chapter 151
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 63G-7-605 is amended to read:
25          63G-7-605. Adjustments to limitation of judgment amounts.
26          (1) As used in this section:
27          (a) "Adjusted consumer price factor" means what the consumer price index, as
28     provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code, would be without the medical
29     care component and the medical services component.

30          (b) "Aggregate limit" means the limit on the aggregate amount of personal injury
31     damages claims from a single occurrence, as provided in Subsection 63G-7-604(1)(d).
32          (c) "Individual limit" means the limit on the amount of a judgment for damages for
33     personal injury, as provided in Subsection 63G-7-604(1)(a).
34          (d) "Latest aggregate limit" means the aggregate limit, as last adjusted by the risk
35     manager under this section.
36          (e) "Latest individual limit" means the individual limit, as last adjusted by the risk
37     manager under this section.
38          (f) "Latest property damage limit" means the property damage limit, as last adjusted by
39     the risk manager under this section.
40          (g) "Medical care component" means the medical care sub-index of the consumer price
41     index, as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
42          (h) "Medical services component" means the medical services sub-index of the
43     consumer price index, as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
44          (i) "Property damage limit" means the limit on the amount of a judgment for property
45     damage, as provided in Subsection 63G-7-604(1)(c).
46          (2) (a) Each even-numbered year, the legislative fiscal analyst shall, subject to
47     Subsection (3):
48          (i) adjust the individual limit by an amount equal to the sum of:
49          (A) 66.5% of the latest individual limit, multiplied by the adjusted consumer price
50     factor;
51          (B) 16.75% of the latest individual limit, multiplied by the medical care component;
52     and
53          (C) 16.75% of the latest individual limit, multiplied by the medical services
54     component;
55          (ii) adjust the aggregate limit by an amount equal to the sum of:
56          (A) 66.5% of the latest aggregate limit, multiplied by the adjusted consumer price
57     factor;

58          (B) 16.75% of the latest aggregate limit, multiplied by the medical care component;
59     and
60          (C) 16.75% of the latest aggregate limit, multiplied by the medical services component;
61          (iii) adjust the property damage limit as a percentage equal to the percentage increase
62     or decrease in the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal
63     Revenue Code; and
64          (iv) no later than [June] May 1, communicate the adjusted limits under Subsections
65     (2)(a)(i), (ii), and (iii) to the risk manager.
66          (b) The legislative fiscal analyst shall round up to the nearest $100 the individual limit,
67     aggregate limit, and property damage limit adjusted under Subsection (2)(a).
68          (3) The legislative fiscal analyst may not adjust an individual limit or aggregate limit
69     under Subsection (2) if the adjustment results in a decrease in the amount of the limit.
70          (4) (a) Each even-numbered year, the risk manager shall make rules, to become
71     effective no later than July 1 of that year, that establish a new individual limit, aggregate limit,
72     and property damage limit, as adjusted under Subsection (2).
73          (b) An adjustment to the individual limit, aggregate limit, or property damage limit
74     under this section has prospective effect only from the date the rules establishing the new limit
75     take effect.
76          (c) An individual limit, aggregate limit, or property damage limit, as adjusted under
77     this section, applies only to a claim for injury or loss that occurs after the effective date of the
78     rules that establish the adjusted limit.