1     
CALCULATING NEW DAMAGES LIMITS FOR PERSONAL

2     
INJURY CASES

3     
2018 SECOND SPECIAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Jani Iwamoto

6     
House Sponsor: V. Lowry Snow

7     

8     LONG TITLE
9     General Description:
10          This bill modifies a provision relating to limits on damages arising from claims against
11     governmental entities.
12     Highlighted Provisions:
13          This bill:
14          ▸     modifies a formula that the legislative fiscal analyst uses to calculate new damages
15     limits on certain claims against governmental entities.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides a special effective date.
20     Utah Code Sections Affected:
21     AMENDS:
22          63G-7-605, as last amended by Laws of Utah 2018, Chapter 419
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 63G-7-605 is amended to read:
26          63G-7-605. Adjustments to limitation of judgment amounts.
27          (1) As used in this section:
28          (a) "Adjusted consumer price factor" means what the consumer price index[, as
29     provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code,] would be without the medical
30     care component and the medical services component.
31          (b) "Aggregate limit" means the limit on the aggregate amount of personal injury
32     damages claims from a single occurrence, as provided in Subsection 63G-7-604(1)(d).
33          (c) "Applicable index" means:
34          (i) the consumer price index, for a calculation of the percentage change in the
35     consumer price index;
36          (ii) the adjusted consumer price factor, for a calculation of the percentage change in the
37     adjusted consumer price factor;
38          (iii) the medical care component, for a calculation of the percentage change in the
39     medical care component; or
40          (iv) the medical services component, for a calculation of the percentage change in the
41     medical services component.
42          (d) "Base applicable index" means an applicable index for the year that is three years
43     before the year in which the legislative fiscal analyst calculates new limits under this section.
44          (e) "Consumer price index" means the annual index reported by the United States
45     Bureau of Labor Statistics for consumer prices for all urban consumers, not seasonally
46     adjusted.
47          [(c)] (f) "Individual limit" means the limit on the amount of a judgment for damages
48     for personal injury, as provided in Subsection 63G-7-604(1)(a).
49          [(d)] (g) "Latest aggregate limit" means the aggregate limit, as last adjusted by the risk
50     manager under this section.
51          [(e)] (h) "Latest individual limit" means the individual limit, as last adjusted by the risk
52     manager under this section.
53          [(f)] (i) "Latest property damage limit" means the property damage limit, as last
54     adjusted by the risk manager under this section.
55          [(g)] (j) "Medical care component" means the medical care sub-index of the consumer
56     price index[, as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code].
57          [(h)] (k) "Medical services component" means the medical care services sub-index of
58     the consumer price index[, as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code].
59          (l) "Percentage change" means the amount of change between the base applicable index
60     and the applicable index for the year before the year in which the legislative fiscal analyst
61     calculates new limits under this section, expressed as a percentage of the base applicable index.
62          [(i)] (m) "Property damage limit" means the limit on the amount of a judgment for
63     property damage, as provided in Subsection 63G-7-604(1)(c).
64          (n) "Risk manager" means the state risk manager appointed under Section 63A-4-101.
65          (2) [(a)] Each even-numbered year, the legislative fiscal analyst shall, subject to
66     Subsection (3):
67          [(i) adjust the] (a) calculate a new individual limit by [an amount equal to the sum of]
68     adding to the latest individual limit the sum of:
69          [(A)] (i) 66.5% of the latest individual limit, multiplied by the percentage change in the
70     adjusted consumer price factor;
71          [(B)] (ii) 16.75% of the latest individual limit, multiplied by the percentage change in
72     the medical care component; and
73          [(C)] (iii) 16.75% of the latest individual limit, multiplied by the percentage change in
74     the medical services component;
75          [(ii) adjust the] (b) calculate a new aggregate limit by [an amount equal to the sum of]
76     adding to the latest aggregate limit the sum of:
77          [(A)] (i) 66.5% of the latest aggregate limit, multiplied by the percentage change in the
78     adjusted consumer price factor;
79          [(B)] (ii) 16.75% of the latest aggregate limit, multiplied by the percentage change in
80     the medical care component; and
81          [(C)] (iii) 16.75% of the latest aggregate limit, multiplied by the percentage change in
82     the medical services component;
83          [(iii) adjust the] (c) calculate a new property damage limit [as a percentage equal to]
84     by adding to the latest property damage limit the amount of the latest property damage limit
85     multiplied by the percentage [increase or decrease] change in the consumer price index [as
86     provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code; and];
87          [(iv) no later than May 1, communicate the adjusted limits under Subsections (2)(a)(i),
88     (ii), and (iii) to the risk manager.]
89          [(b) The legislative fiscal analyst shall] (d) round up to the nearest $100 the individual
90     limit, aggregate limit, and property damage limit [adjusted] calculated under [Subsection
91     (2)(a).] Subsections (2)(a), (b), and (c); and
92          (e) no later than May 1, communicate the newly calculated limits under Subsections
93     (2)(a), (b), and (c) to the risk manager.
94          (3) The [legislative fiscal analyst may not adjust an] newly calculated individual limit
95     [or], aggregate limit, or property damage limit under Subsection (2) [if the adjustment results in
96     a decrease in] may not be less than the amount of the limit before the new calculation under
97     Subsection (2).
98          (4) (a) Each even-numbered year, the risk manager shall make rules, to become
99     effective no later than July 1 of that year, that establish a new individual limit, aggregate limit,
100     and property damage limit, as [adjusted] calculated under Subsection (2).
101          (b) [An adjustment to the] A newly calculated individual limit, aggregate limit, or
102     property damage limit under this section has prospective effect only from the date the rules
103     establishing the new limit take effect.
104          (c) An individual limit, aggregate limit, or property damage limit, as [adjusted] newly
105     calculated under this section, applies only to a claim for injury or loss that occurs after the
106     effective date of the rules that establish the [adjusted] newly calculated limit.
107          Section 2. Effective date.
108          If approved by two-thirds of all the members elected to each house, this bill takes effect
109     upon approval by the governor, or the day following the constitutional time limit of Utah
110     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
111     the date of veto override.