DAR File No. 40282

Administrative Services, Risk Management

Rule R37-4

Adjusted Utah Governmental Immunity Act Limitations on Judgments

Notice of Proposed Rule

(Amendment)

DAR File No.: 40282
Filed: 03/23/2016 05:03:29 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of the rule is to comply with Subsection 63G-7-604(4), which requires the State Risk Manager to calculate changes to the limitations of judgments against governmental entities based upon the Consumer Price Index and make rules, effective July 1 of each even-numbered year to establish the new limitation of judgment amounts.

Summary of the rule or change:

This amendment adjusts the limitations on judgment amounts that may be obtained from governmental entities for personal injury and property damage claims arising after 07/01/2016. The anticipated cost impact information provided below is an estimate of how these revisions will impact all governmental entities in the State of Utah and all businesses and individuals who may have personal injury or property damage claims against any governmental entity in the State of Utah.

State statutory or constitutional authorization for this rule:

• Subsection 63G-7-604(4)

Anticipated cost or savings to:

the state budget:

This amendment will affect governmental entity judgment limitations as follows: $14,100 increase for personal injuries for one person in any one occurrence; $48,200 increase for the personal injury aggregate of individual awards for a single occurrence; and $5,600 increase for property damages in any one occurrence. Consequently, state agencies, institutions of higher education, local education agencies, and the State Risk Fund will be exposed to those increased limits and may incur additional claim costs over the next two fiscal years. It is impossible to quantify what those increased costs may be because claims for personal injury and property damage can only be evaluated on an individualized basis and each claim is unique. Moreover, there is no way to predict accurately how many "immunity cap" claims the state will incur over the next two fiscal years.

local governments:

This amendment will affect local government judgment limitations as follows: $14,100 increase for personal injuries for one person in any one occurrence; $48,200 increase for the personal injury aggregate of individual awards for a single occurrence; and $5,600 increase for property damages in any one occurrence. Consequently, local governments will be exposed to those increased limits and may incur additional claim costs over the next two fiscal years. It is impossible to quantify what those increased costs may be because claims for personal injury and property damage can only be evaluated on an individualized basis, and each claim is unique. Moreover, there is no way to predict accurately how many "immunity cap" claims local governments will incur over the next two fiscal years.

small businesses:

Small businesses may be entitled to additional damages for personal injury and property damage claims caused by governmental entities; however, there is no way to predict those increases accurately, because damages for such claims can only be evaluated on an individualized basis. Furthermore, there is no way to predict accurately how many "immunity cap" claims involving small business will arise over the next two fiscal years.

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

Persons may be entitled to additional damages for personal injury and property damage claims caused by governmental entities; however, there is no way to predict those increases accurately, because damages for such claims can only be evaluated on an individualized basis. Furthermore, there is no way to predict accurately how many "immunity cap" claims involving persons will arise over the next two fiscal years.

Compliance costs for affected persons:

This amendment will not create any additional compliance costs other than potential increased claim costs that may be incurred by governmental entities, as indicated above.

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

There may be a potential for increased damages for personal injury and property claims against governmental entities.

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:

• Brian Nelson at the above address, by phone at 801-538-9576, by FAX at 801-538-9597, or by Internet E-mail at benelson@utah.gov

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:

05/16/2016

This rule may become effective on:

05/23/2016

Authorized by:

Tani Downing, 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 [2011]2013 and [2013]2015 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 [2011]2013 is calculated to be [222.43]232.02 and the index for [2013]2015 is [232.02]236.75. The percentage difference between the [2011]2013 index and the [2013]2015 index was then computed to be [4.3%]2.0%.

 

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, [2014]2016 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 [$703,000]$717,100 for one person in any one occurrence, and [$2,407,700]$2,455,900 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 [$281,300]$286,900 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).

11) Incident(s) occurring on or after July 1, 2016 - $717,100 for one person in an occurrence, $2,455,900 aggregate for two or more persons in an occurrence, and $286,900 for property damage for any one occurrence as explained in R37-4-2(2).

 

KEY: limitation on judgments, risk management, Governmental Immunity Act caps

Date of Enactment or Last Substantive Amendment: [April 30, 2014]2016

Notice of Continuation: May 30, 2012

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