1     
EXCESS DAMAGES CLAIMS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jani Iwamoto

5     
House Sponsor: V. Lowry Snow

6     Cosponsors:
7     Lyle W. Hillyard
Howard A. Stephenson

8     

9     LONG TITLE
10     General Description:
11          This bill addresses claims for damages for personal injury that are subject to a statutory
12     limit.
13     Highlighted Provisions:
14          This bill:
15          ▸     modifies the inflationary adjustment formula for personal injury damages caps;
16          ▸     modifies the board of examiner process for reporting claims; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          63G-7-604, as renumbered and amended by Laws of Utah 2008, Chapter 382
25          63G-9-304, as renumbered and amended by Laws of Utah 2008, Chapter 382
26     ENACTS:
27          63G-7-605, Utah Code Annotated 1953
28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 63G-7-604 is amended to read:
31          63G-7-604. Limitation of judgments against governmental entity or employee --
32     Process for adjustment of limits.
33          (1) (a) Except as provided in Subsection (2) and subject to Subsection (3), if a
34     judgment for damages for personal injury against a governmental entity, or an employee whom
35     a governmental entity has a duty to indemnify, exceeds $583,900 for one person in any one
36     occurrence, the court shall reduce the judgment to that amount.
37          (b) A court may not award judgment of more than the amount in effect under
38     Subsection (1)(a) for injury or death to one person regardless of whether or not the function
39     giving rise to the injury is characterized as governmental.
40          (c) Except as provided in Subsection (2) and subject to Subsection (3), if a judgment
41     for property damage against a governmental entity, or an employee whom a governmental
42     entity has a duty to indemnify, exceeds $233,600 in any one occurrence, the court shall reduce
43     the judgment to that amount, regardless of whether or not the function giving rise to the
44     damage is characterized as governmental.
45          (d) Subject to Subsection (3), there is a $2,000,000 limit to the aggregate amount of
46     individual awards that may be awarded in relation to a single occurrence.
47          (2) The damage limits established in this section do not apply to damages awarded as
48     compensation when a governmental entity has taken or damaged private property for public use
49     without just compensation.
50          (3) The limitations of judgments established in Subsection (1) shall be adjusted
51     according to the methodology set forth in [Subsection (4)] Section 63G-7-605.
52          [(4) (a) Each even-numbered year, the risk manager shall:]
53          [(i) calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5),
54     Internal Revenue Code;]
55          [(ii) calculate the increase or decrease in the limitation of judgment amounts
56     established in this section as a percentage equal to the percentage change in the Consumer
57     Price Index since the previous adjustment made by the risk manager or the Legislature; and]
58          [(iii) after making an increase or decrease under Subsection (4)(a)(ii), round up the
59     limitation of judgment amounts established in Subsection (1) to the nearest $100.]
60          [(b) Each even-numbered year, the risk manager shall make rules, which become
61     effective no later than July 1, that establish the new limitation of judgment amounts calculated
62     under Subsection (4)(a).]
63          [(c) Adjustments made by the risk manager to the limitation of judgment amounts
64     established by this section have prospective effect only from the date the rules establishing the
65     new limitation of judgment take effect and those adjusted limitations of judgment apply only to
66     claims for injuries or losses that occur after the effective date of the rules that establish those
67     new limitations of judgment.]
68          Section 2. Section 63G-7-605 is enacted to read:
69          63G-7-605. Adjustments to limitation of judgment amounts.
70          (1) As used in this section:
71          (a) "Adjusted consumer price factor" means what the consumer price index, as
72     provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code, would be without the medical
73     care component and the medical services component.
74          (b) "Aggregate limit" means the limit on the aggregate amount of personal injury
75     damages claims from a single occurrence, as provided in Subsection 63G-7-604(1)(d).
76          (c) "Individual limit" means the limit on the amount of a judgment for damages for
77     personal injury, as provided in Subsection 63G-7-604(1)(a).
78          (d) "Latest aggregate limit" means the aggregate limit, as last adjusted by the risk
79     manager under this section.
80          (e) "Latest individual limit" means the individual limit, as last adjusted by the risk
81     manager under this section.
82          (f) "Latest property damage limit" means the property damage limit, as last adjusted by
83     the risk manager under this section.
84          (g) "Medical care component" means the medical care sub-index of the consumer price
85     index, as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
86          (h) "Medical services component" means the medical services sub-index of the
87     consumer price index, as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
88          (i) "Property damage limit" means the limit on the amount of a judgment for property
89     damage, as provided in Subsection 63G-7-604(1)(c).
90          (2) (a) Each even-numbered year, the legislative fiscal analyst shall, subject to
91     Subsection (3):
92          (i) adjust the individual limit by an amount equal to the sum of:
93          (A) 66.5% of the latest individual limit, multiplied by the adjusted consumer price
94     factor;
95          (B) 16.75% of the latest individual limit, multiplied by the medical care component;
96     and
97          (C) 16.75% of the latest individual limit, multiplied by the medical services
98     component;
99          (ii) adjust the aggregate limit by an amount equal to the sum of:
100          (A) 66.5% of the latest aggregate limit, multiplied by the adjusted consumer price
101     factor;
102          (B) 16.75% of the latest aggregate limit, multiplied by the medical care component;
103     and
104          (C) 16.75% of the latest aggregate limit, multiplied by the medical services component;
105          (iii) adjust the property damage limit as a percentage equal to the percentage increase
106     or decrease in the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal
107     Revenue Code; and
108          (iv) no later than June 1, communicate the adjusted limits under Subsections (2)(a)(i),
109     (ii), and (iii) to the risk manager.
110          (b) The legislative fiscal analyst shall round up to the nearest $100 the individual limit,
111     aggregate limit, and property damage limit adjusted under Subsection (2)(a).
112          (3) The legislative fiscal analyst may not adjust an individual limit or aggregate limit
113     under Subsection (2) if the adjustment results in a decrease in the amount of the limit.
114          (4) (a) Each even-numbered year, the risk manager shall make rules, to become
115     effective no later than July 1 of that year, that establish a new individual limit, aggregate limit,
116     and property damage limit, as adjusted under Subsection (2).
117          (b) An adjustment to the individual limit, aggregate limit, or property damage limit
118     under this section has prospective effect only from the date the rules establishing the new limit
119     take effect.
120          (c) An individual limit, aggregate limit, or property damage limit, as adjusted under
121     this section, applies only to a claim for injury or loss that occurs after the effective date of the
122     rules that establish the adjusted limit.
123          Section 3. Section 63G-9-304 is amended to read:
124          63G-9-304. Adjustment of claims -- Recommendations to Executive
125     Appropriations Committee.
126          (1) The board [must] shall, at the time designated, proceed to examine and adjust all
127     claims referred to in Section 63G-9-302, and may hear evidence in support of or against [them]
128     the claims, and shall report to the [Legislature] Executive Appropriations Committee the facts
129     and recommendations concerning [them as it may think] the claims as the board considers
130     proper.
131          (2) In making its recommendations, the board may state and use any official or
132     personal knowledge which any member of the board may have touching [such] the claims.
133          (3) The board [shall] may not pass upon or send to the [Legislature] Executive
134     Appropriations Committee any claim for which the state or a political subdivision would not
135     otherwise be liable were it not for its sovereign immunity.
136          (4) Notwithstanding Subsection (3), claims wherein the state or a political subdivision
137     would be liable, were it not for its sovereign immunity, whether recommended by the board for
138     approval or disapproval, shall be reported by the board to the Legislature with appropriate
139     findings and recommendations as [above] provided in this section.