No. 28667 (Repeal and Reenact): R37-4. Adjusted Utah Governmental Immunity Limitations on Judgments

DAR File No.: 28667
Filed: 04/21/2006, 04:50
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Subsection 63-30d-604(4)(b) requires the Utah State Risk Manager to calculate and establish, every other year, new limitations on judgments based on increases or decreases to the Consumer Price Index (CPI) and to submit these changes in administrative rule. The rule reflects the calculations of the changes in the CPI. The increase in the CPI is reflected in an increase in the maximum dollar amounts that the court can award in cases involving the State of Utah and local government entities. A 5.5% increase in the CPI is reflected in this rule.

 

Summary of the rule or change:

The substantive difference between the old rule and the new rule are as follows. This rulemaking changes the calendar years that the CPI is based upon to 2003 and 2005. Also, the rulemaking will increase the maximum dollar amount that the courts can award in judgment against a Utah governmental entity. The CPI increase is 5.5%. This increase means that one person in any one occurrence can be awarded $583,900. If the case involves two or more persons in any one occurrence, the maximum amount that can be awarded is $1,167,900. In addition, a new section, R37-4-3, establishes the limitations of judgments by calendar date and dollar amount for easy reference.

 

State statutory or constitutional authorization for this rule:

Subsection 63-30d-604(4)(b)

 

Anticipated cost or savings to:

the state budget:

The implementation of this rule will result in the maximum amount that a court can award for one person in any one occurrence to increase by $30,400 or a maximum of $583,900. The implementation of this rule will also result in an increase of $60,900 to the maximum that a court can award to two or more persons in any one occurrence. The maximum will increase from $1,107,000 to $1,167,900. These changes will result in higher costs to the State.

 

local governments:

The increases in local governments will be the same as for State government. The caps on awards will increase from $553,500 for one person in any one occurrence to $583,900 and from $1,107,000 for two or more persons in any one occurrence to $1,167,900. These changes will likely result in higher costs to local governments.

 

other persons:

No impact because the rule only applies to entities covered by the Utah Governmental Immunity Act.

 

Compliance costs for affected persons:

No impact because the rule only applies to entities covered by the Utah Governmental Immunity Act.

 

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

This rule has no impact on business. D'Arcy Dixon Pignanelli, 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 MAIN 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 [e-mail]

 

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:

06/14/2006

 

This rule may become effective on:

07/01/2006

 

Authorized by:

Roger Livingston, Director

 

 

RULE TEXT

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 63-30-34(4)(b) the Risk Manager hereby establishes a new limitation of judgment.

Accordingly, the Risk Manager has calculated the consumer price index for calendar years 1999 and 2001 using 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 calendar year 1999 is calculated to be 165.14 and the index for 2001 is 175.88. The percentage difference between the 1999 index and the 2001 index was then computed to be 6.5%.

 

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

As a result of the above required calculations, the new limitation of judgment amounts currently required by UCA 63-30-34(1) has been increased as follows, and is effective September 23, 2002:

1) In accordance with UCA 63-30-34(1)(a), the limit for damages for personal injury against a governmental entity, or an employee whom a governmental entity has a duty to indemnify is $532,500 for one person in any one occurrence (instead of $500,000), or $1,065,000 for two or more persons in any one occurrence (instead of $1,000,000);

2) In accordance with UCA 63-30-34(1)(b), the limit for damages for injury or death to one person is $532,500, (instead of $500,000) regardless of whether or not the function giving rise to the injury is characterized as governmental; and

3) In accordance with UCA 63-30-34(1)(c), 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 $213,000 in any one occurrence (instead of $200,000).]

R37-4-1. Authority and Calculation Process.

Pursuant to UCA 63-30d-604(4)(b) the Risk Manager hereby establishes a new limitation of judgment.

Accordingly, the Risk Manager has calculated the consumer price index (CPI) for calendar years 2003 and 2005 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 2003 is calculated to be 182.75 and the index for 2005 is 192.77. The percentage difference between the 2003 index and the 2005 index was then computed to be 5.5%.

 

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 63-30d-604(1)(a) has been increased as follows, and is effective July 1, 2006:

1) In accordance with UCA 63-30d-604(1)(a), the limit for damages for personal injury against a governmental entity, or an employee who a governmental entity has a duty to indemnify is $583,900 for one person in any one occurrence (instead of $553,500), or $1,167,900 for two or more persons in any one occurrence (instead of $1,107,000);

2) In accordance with UCA 63-30d-604(1)(b), the limit for damages for injury or death is $583,900, (instead of $553,500) regardless of whether or not the function giving rise to the injury is characterized as governmental; and

3) In accordance with UCA 63-30d-604(1)(c), 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 $233,600 in any one occurrence (instead of $221,400).

 

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 for two or more persons in an occurrence; and $100,000 for property damage for any one occurrence as explained in R37-4-2(3).

2) Incident(s) occurring on or after July 1, 2001 - $500,000 for one person in an occurrence, $1,000,000 for two or more persons in an occurrence; and $200,000 for property damage for any one occurrence as explained in R37-4-2(3).

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

4) Incident(s) occurring on or after July 1, 2004 - $553,500 for one person in an occurrence, $1,107,000 for two or more persons in an occurrence, and $221,400 for property damage for any one occurrence as explained in R37-4-2(3).

5) Incident(s) occurring on or after July 1, 2006 - $583,900 for one person in an occurrence, $1,167,900 for two or more persons in an occurrence, and $233,600 for property damage for any one occurrence as explained in R37-4-2(3).

 

KEY: limitation on judgments, risk management, governmental immunity act caps

Date of Enactment or Last Substantive Amendment: [November 16, 2002]2006

Authorizing, and Implemented or Interpreted Law: 63-30-34(4)(b)