Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 98 Second Substitute (2017GS)

Sponsor

Sen. Iwamoto, J.

Final action

Governor Signed 3/20/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies the inflationary adjustment formula for personal injury damages caps;
• modifies the board of examiner process for reporting claims; and
• makes technical changes.

Every vote on this bill

Bill text

EXCESS DAMAGES CLAIMS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jani Iwamoto
House Sponsor: 
V. Lowry Snow
Cosponsors:
Lyle W. Hillyard
Howard A. Stephenson
LONG TITLE
General Description:
This bill addresses claims for damages for personal injury that are subject to a statutory
limit.
Highlighted Provisions:
This bill:
▸ modifies the inflationary adjustment formula for personal injury damages caps;
▸ modifies the board of examiner process for reporting claims; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63G-7-604
, as renumbered and amended by Laws of Utah 2008, Chapter 382
63G-9-304
, as renumbered and amended by Laws of Utah 2008, Chapter 382
ENACTS:
63G-7-605
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63G-7-604
 is amended to read:
63G-7-604.
Limitation of judgments against governmental entity or employee --
Process for adjustment of limits.
(1) (a) Except as provided in Subsection (2) and subject to Subsection (3), if a
judgment for damages for personal injury against a governmental entity, or an employee whom
a governmental entity has a duty to indemnify, exceeds $583,900 for one person in any one
occurrence, the court shall reduce the judgment to that amount.
(b) A court may not award judgment of more than the amount in effect under
Subsection (1)(a) for injury or death to one person regardless of whether or not the function
giving rise to the injury is characterized as governmental.
(c) Except as provided in Subsection (2) and subject to Subsection (3), if a judgment
for property damage against a governmental entity, or an employee whom a governmental
entity has a duty to indemnify, exceeds $233,600 in any one occurrence, the court shall reduce
the judgment to that amount, regardless of whether or not the function giving rise to the
damage is characterized as governmental.
(d) Subject to Subsection (3), there is a $2,000,000 limit to the aggregate amount of
individual awards that may be awarded in relation to a single occurrence.
(2) The damage limits established in this section do not apply to damages awarded as
compensation when a governmental entity has taken or damaged private property for public use
without just compensation.
(3) The limitations of judgments established in Subsection (1) shall be adjusted
according to the methodology set forth in [
Subsection (4)
] 
Section 
63G-7-605
.
[
(4) (a) Each even-numbered year, the risk manager shall:
]
[
(i) calculate the consumer price index as provided in Sections 1(f)(4) and 1(f)(5),
Internal Revenue Code;
]
[
(ii) calculate the increase or decrease in the limitation of judgment amounts
established in this section as a percentage equal to the percentage change in the Consumer
Price Index since the previous adjustment made by the risk manager or the Legislature; and
]
[
(iii) after making an increase or decrease under Subsection (4)(a)(ii), round up the
limitation of judgment amounts established in Subsection (1) to the nearest $100.
]
[
(b) Each even-numbered year, the risk manager shall make rules, which become
effective no later than July 1, that establish the new limitation of judgment amounts calculated
under Subsection (4)(a).
]
[
(c) Adjustments made by the risk manager to the limitation of judgment amounts
established by this section have prospective effect only from the date the rules establishing the
new limitation of judgment take effect and those adjusted limitations of judgment apply only to
claims for injuries or losses that occur after the effective date of the rules that establish those
new limitations of judgment.
]
Section 2. Section 
63G-7-605
 is enacted to read:
 63G-7-605.
Adjustments to limitation of judgment amounts.
(1) As used in this section:
(a) "Adjusted consumer price factor" means what the consumer price index, as
provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code, would be without the medical
care component and the medical services component.
(b) "Aggregate limit" means the limit on the aggregate amount of personal injury
damages claims from a single occurrence, as provided in Subsection 
63G-7-604
(1)(d).
(c) "Individual limit" means the limit on the amount of a judgment for damages for
personal injury, as provided in Subsection 
63G-7-604
(1)(a).
(d) "Latest aggregate limit" means the aggregate limit, as last adjusted by the risk
manager under this section.
(e) "Latest individual limit" means the individual limit, as last adjusted by the risk
manager under this section.
(f) "Latest property damage limit" means the property damage limit, as last adjusted by
the risk manager under this section.
(g) "Medical care component" means the medical care sub-index of the consumer price
index, as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(h) "Medical services component" means the medical services sub-index of the
consumer price index, as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
(i) "Property damage limit" means the limit on the amount of a judgment for property
damage, as provided in Subsection 
63G-7-604
(1)(c).
(2) (a) Each even-numbered year, the legislative fiscal analyst shall, subject to
Subsection (3):
(i) adjust the individual limit by an amount equal to the sum of:
(A) 66.5% of the latest individual limit, multiplied by the adjusted consumer price
factor;
(B) 16.75% of the latest individual limit, multiplied by the medical care component;
and
(C) 16.75% of the latest individual limit, multiplied by the medical services
component;
(ii) adjust the aggregate limit by an amount equal to the sum of:
(A) 66.5% of the latest aggregate limit, multiplied by the adjusted consumer price
factor;
(B) 16.75% of the latest aggregate limit, multiplied by the medical care component;
and
(C) 16.75% of the latest aggregate limit, multiplied by the medical services component;
(iii) adjust the property damage limit as a percentage equal to the percentage increase
or decrease in the consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal
Revenue Code; and
(iv) no later than June 1, communicate the adjusted limits under Subsections (2)(a)(i),
(ii), and (iii) to the risk manager.
(b) The legislative fiscal analyst shall round up to the nearest $100 the individual limit,
aggregate limit, and property damage limit adjusted under Subsection (2)(a).
(3) The legislative fiscal analyst may not adjust an individual limit or aggregate limit
under Subsection (2) if the adjustment results in a decrease in the amount of the limit.
(4) (a) Each even-numbered year, the risk manager shall make rules, to become
effective no later than July 1 of that year, that establish a new individual limit, aggregate limit,
and property damage limit, as adjusted under Subsection (2).
(b) An adjustment to the individual limit, aggregate limit, or property damage limit
under this section has prospective effect only from the date the rules establishing the new limit
take effect.
(c) An individual limit, aggregate limit, or property damage limit, as adjusted under
this section, applies only to a claim for injury or loss that occurs after the effective date of the
rules that establish the adjusted limit.
Section 3. Section 
63G-9-304
 is amended to read:
63G-9-304.
Adjustment of claims -- Recommendations to Executive
Appropriations Committee.
(1) The board [
must
] 
shall
, at the time designated, proceed to examine and adjust all
claims referred to in Section 
63G-9-302
, and may hear evidence in support of or against [
them
]
the claims
, and shall report to the [
Legislature
] 
Executive Appropriations Committee
 the facts
and recommendations concerning [
them as it may think
] 
the claims as the board considers
proper.
(2) In making its recommendations, the board may state and use any official or
personal knowledge which any member of the board may have touching [
such
] 
the
 claims.
(3) The board [
shall
] 
may
 not pass upon or send to the [
Legislature
] 
Executive
Appropriations Committee
 any claim for which the state or a political subdivision would not
otherwise be liable were it not for its sovereign immunity.
(4) Notwithstanding Subsection (3), claims wherein the state or a political subdivision
would be liable, were it not for its sovereign immunity, whether recommended by the board for
approval or disapproval, shall be reported by the board to the Legislature with appropriate
findings and recommendations as [
above
] provided 
in this section
.