DAR File No. 38250

Administrative Services, Risk Management

Rule R37-4

Adjusted Utah Governmental Immunity Act Limitations on Judgments

Notice of Proposed Rule

(Amendment)

DAR File No.: 38250
Filed: 01/17/2014 08:52:34 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Subsection 63G-7-604(4) mandates that the Governmental Immunity Act Limitations on Judgments be adjusted in even-numbered years.

Summary of the rule or change:

Commencing 07/01/2014, the limit for personal injury damages against a governmental entity will be increased from $674,000 to $703,000 per person/per occurrence, and from $2,308,400 to $2,407,700 in the aggregate/per occurrence. Also commencing 07/01/2014, the limit for property damages against a governmental entity will be increased from $269,700 to $281,300 in any one occurrence.

State statutory or constitutional authorization for this rule:

• Subsection 63G-7-604(4)

Anticipated cost or savings to:

the state budget:

In general, there is the potential for a 4.3% increase in personal injury and property damage limits during the next two fiscal years; however, it is impossible to calculate or estimate the aggregate anticipated costs that may arise due to this amendment, because those costs will be based upon the unique facts and applicable laws associated with the claims that will arise in FY2015 and FY2016.

local governments:

Because this amendment affects local governmental entities, it will have the same impact on them, namely the potential for a 4.3% increase in personal injury and property damage limits during the next two fiscal years. As indicated above, it is impossible to calculate or estimate the aggregate anticipated costs that may arise due to this amendment, because those costs will be based upon the unique facts and applicable laws associated with the claims that will arise in FY2015 and FY2016.

small businesses:

Because this amendment increases the limitation on judgments, it may increase damage awards for small businesses that have legitimate claims against governmental entities in the State of Utah. Small businesses may also be expected to purchase additional insurance as a condition of doing business with governmental entities.

persons other than small businesses, businesses, or local governmental entities:

Because this amendment increases the limitation on judgments, it may increase damage awards for persons that have legitimate claims against governmental entities in the State of Utah. Persons may also be expected to purchase additional insurance as a condition of doing business with governmental entities.

Compliance costs for affected persons:

Governmental entities may experience premium increases as a result of this amendment; however, it is impossible to predict those costs for each governmental entity within the State of Utah.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule may benefit businesses by increasing the available liability limits for personal injuries and property damage caused by governmental entities; however, such increases will be unique and limited to the unique facts of each case. This rule may also result in an increase in insurance premium costs for vendors and other organizations that provide events or services for governmental entities, but it is impossible to quantify such increases.

Kimberly K. Hood, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Risk Management
Room 5120 STATE OFFICE BLDG
450 N STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Stephen Hewlett at the above address, by phone at 801-538-9572, by FAX at 801-538-9597, or by Internet E-mail at [email protected]
• Brian Nelson at the above address, by phone at 801-538-9576, by FAX at 801-538-9597, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/30/2014

This rule may become effective on:

04/30/2014

Authorized by:

Kimberly Hood, Executive Director

R37. Administrative Services, Risk Management.

R37-4. Adjusted Utah Governmental Immunity Act Limitations on Judgments.

R37-4-1. Authority and Calculation Process.

Pursuant to UCA 63G-7-604(4) the Risk Manager hereby establishes a new limitation of judgment.

Accordingly, the Risk Manager has calculated the consumer price index (CPI) for calendar years [2009 and ]2011 and 2013 using the standards provided in Sections 1(f)(4) and 1 (f)(5) of the Internal Revenue Code. Section 1(f)(4) has defined the CPI for any calendar year to mean the average of the consumer price index as of the close of the 12-month period ending on August 31 of such calendar year. Section 1(f)(5) has defined "consumer price index" to mean the index used for all-urban consumers published by the Department of Labor. By applying these standards, the consumer price index for the calendar year [2009]2011 is calculated to be [214.00]222.43 and the index for [2011]2013 is [222.43]232.02. The percentage difference between the [2009]2011 index and the [2011]2013 index was then computed to be [3.9%]4.3%.

 

R37-4-2. New Limitation of Judgment Amounts.

As a result of the above required calculations, the new limitation of judgment amounts currently required by UCA 63G-7-604(1) has been increased as follows, and is effective July 1, [2012]2014 for claims occurring on or after that date:

1) The limit for damages for personal injury against a governmental entity, or an employee who a governmental entity has a duty to indemnify, is [$674,000]$703,000 for one person in any one occurrence, and [$2,308,400]$2,407,700 aggregate amount of individual awards that be may awarded in relation to a single occurrence; and

2) The limit for property damages (excluding damages awarded as compensation when a governmental entity has taken or damaged private property for public use without just compensation) against a governmental entity, or an employee whom a governmental entity has a duty to indemnify is [$269,700]$281,300 in any one occurrence.

 

R37-4-3. Limitations of Judgments by Calendar Date.

The limitation on judgments are established by the date of the occurrence. The dates and dollar amounts are as follows:

1) Incident(s) occurring before July 1, 2001 - $250,000 for one person in an occurrence, $500,000 aggregate for two or more persons in an occurrence; and $100,000 for property damage for any one occurrence as explained in R37-4-2(2).

2) Incident(s) occurring on or after July 1, 2001 - $500,000 for one person in an occurrence, $1,000,000 aggregate for two or more persons in an occurrence; and $200,000 for property damage for any one occurrence as explained in R37-4-2(2).

3) Incident(s) occurring on or after July 1, 2002 - $532,500 for one person in an occurrence, $1,065,000 aggregate for two or more persons in an occurrence; and $213,000 for property damage for any one occurrence as explained in R37-4-2(2).

4) Incident(s) occurring on or after July 1, 2004 - $553,500 for one person in an occurrence, $1,107,000 aggregate for two or more persons in an occurrence, and $221,400 for property damage for any one occurrence as explained in R37-4-2(2).

5) Incident(s) occurring on or after July 1, 2006 - $583,900 for one person in an occurrence, $1,167,900 aggregate for two or more persons in an occurrence, and $233,600 for property damage for any one occurrence as explained in R37-4-2(2).

6) Incident(s) occurring on or after July 1, 2007 - $583,900 for one person in an occurrence, $2,000,000 aggregate for two or more persons in an occurrence, and $233,600 for property damage for any one occurrence as explained in R37-4-2(2).

7) Incident(s) occurring on or after July 1, 2008 - $620,700 for one person in an occurrence, $2,126,000 aggregate for two or more persons in an occurrence, and $248,300 for property damage for any one occurrence as explained in R37-4-2(2).

8) Incident(s) occurring on or after July 1, 2010 - $648,700 for one person in an occurrence, $2,221,700 aggregate for two or more persons in an occurrence, and $259,500 for property damage for any one occurrence as explained in R37-4-2(2).

9) Incident(s) occurring on or after July 1, 2012 - $674,000 for one person in an occurrence, $2,308,400 aggregate for two or more persons in an occurrence, and $269,700 for property damage for any one occurrence as explained in R37-4-2(2).

10) Incident(s) occurring on or after July 1, 2014 - $703,000 for one person in an occurrence, $2,407,700 aggregate for two or more persons in an occurrence, and $281,300 for property damage for any one occurrence as explained in R37-4-2(2).

 

KEY: limitation on judgments, risk management, [g]Governmental [i]Immunity [a]Act caps

Date of Enactment or Last Substantive Amendment: [May 31, 2012]2014

Notice of Continuation: May 30, 2012

Authorizing, and Implemented or Interpreted Law: 63G-7-604(4)