Representative Brady Brammer proposes the following substitute bill:





Chief Sponsor: Brady Brammer

Senate Sponsor: Todd D. Weiler


9     General Description:
10          This bill modifies provisions relating to the authority of the state's risk manager.
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies language relating to the claims that the state's risk manager may compromise
14     and settle;
15          ▸     modifies the dollar amount limits relating to the authority of the risk manager to
16     compromise and settle claims and relating to the settlement of claims requiring the
17     approval of the attorney general and the executive director of the Department of
18     Administrative Services or of the governor; and
19          ▸     requires the risk manager to communicate to the legislative general counsel regarding
20     settlement negotiations.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          63G-10-503, as enacted by Laws of Utah 2015, Chapter 355

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 63G-10-503 is amended to read:
31          63G-10-503. Risk manager's authority to settle a claim -- Additional approvals
32     required.
33          (1) The risk manager may compromise and settle any claim [against the state] for which
34     the risk management fund may be liable:
35          [(1)] (a) on the risk manager's own authority, if the settlement amount is [$50,000]
36     $100,000 or less;
37          [(2)] (b) upon the approval of the attorney general, or the attorney general's
38     representative, and the executive director, if the settlement amount is more than [$50,000]
39     $100,000 but not more than [$200,000] $250,000;
40          [(3)] (c) upon the governor's approval, if the settlement amount is more than [$200,000]
41     $250,000 but not more than $500,000;
42          [(4)] (d) upon the Legislative Management Committee's approval, if the settlement
43     amount is more than $500,000 but not more than $1,000,000; and
44          [(5)] (e) upon the Legislature's approval, if the settlement amount is more than
45     $1,000,000.
46          (2) (a) The risk manager shall:
47          (i) as soon as reasonably possible after negotiations begin, notify legislative general
48     counsel of negotiations that the risk manager reasonably believes to have the potential to lead to
49     a settlement requiring approval under Subsection (1)(d) or (e); and
50          (ii) continue to keep legislative general counsel informed of material developments in
51     the negotiation process.
52          (b) The information that the risk manager shall provide to legislative general counsel
53     under Subsection (2)(a) includes:
54          (i) the nature of the claim that is the subject of the settlement negotiations;
55          (ii) the known facts that support the claim and the known facts that controvert the claim;
56     and
57          (iii) the risk manager's assessment of the potential liability under the claim.
58          (c) A document, paper, electronic data, communication, or other material that the risk

59     manager provides to legislative general counsel in the discharge of the risk manager's
60     responsibility under Subsection (2) may not be considered to be a record, as defined in Section
61     63G-2-103.
62          (d) Information provided by the risk manager to legislative general counsel under
63     Subsection (2)(a) and a communication between the risk manager and legislative general counsel
64     under Subsection (2)(a) shall be considered to be evidence that is subject to Rule 408 of the
65     Utah Rules of Evidence to the fullest extent possible.
66          (e) Subsections (2)(c) and (d) apply regardless of whether:
67          (i) the risk manager acts personally under this section or through counsel or another
68     individual acting under the risk manager's direction; or
69          (ii) other individuals under the direction of legislative general counsel are involved in
70     the process described in this section.