1.1                          A bill for an act 
  1.2             relating to civil actions; providing limits on 
  1.3             liability of certain private corrections treatment 
  1.4             facilities that receive patients under court or 
  1.5             administrative order; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 604A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [604A.301] [LIMITED LIABILITY FOR CERTAIN 
  1.9   NONPROFIT TREATMENT FACILITIES.] 
  1.10     Subdivision 1.  [LIMIT ON AMOUNT OF LIABILITY.] A treatment 
  1.11  facility organized as a nonprofit corporation under chapter 317A 
  1.12  that accepts individuals for treatment under a court order or an 
  1.13  order of the commissioner of corrections as part of an adult or 
  1.14  juvenile corrections program is subject to the same liability 
  1.15  limits provided for state agencies under section 3.736, 
  1.16  subdivision 4, with respect to claims against the facility 
  1.17  arising out of the treatment of those individuals or the 
  1.18  activities of those individuals while in the care of the 
  1.19  program, if the treatment facility procures insurance against 
  1.20  liability for claims described under this section, which 
  1.21  insurance is in an amount equal to the greater of $500,000 per 
  1.22  claim or occurrence or the amounts specified for the state under 
  1.23  section 3.736, subdivision 4.  This section does not apply if 
  1.24  the conduct of a facility was intentional or grossly negligent. 
  1.25     Subd. 2.  [EFFECT OF EXCESS LIABILITY 
  1.26  INSURANCE.] Notwithstanding subdivision 1, if a treatment 
  2.1   facility has insurance coverage in excess of the liability 
  2.2   limits under section 3.736, subdivision 4, the procurement of 
  2.3   that insurance constitutes a waiver of those limits but only to 
  2.4   the extent that valid and collectible insurance exceeds those 
  2.5   limits and covers a claim.  The purchase of excess insurance has 
  2.6   no other effect on the liability of the treatment facility. 
  2.7      Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
  2.8      Section 1 is effective August 1, 1998, and applies to 
  2.9   claims arising from incidents occurring on or after that date.