Bill Summary for Bill Number SB13-023

Date: 03/14/2013

Final
BILL SUMMARY for SB13-023

HOUSE COMMITTEE ON JUDICIARY

Votes: View-->	Action Taken:
Refer Senate Bill 13-023 to the Committee of the W	PASS

02:23 PM -- Senate Bill 13-023

The committee returned to order.

Representative Levy, sponsor, presented Senate Bill 13-023. The bill increases the damages limitation cap under the Colorado Governmental Immunity Act (CGIA) to $478,000 for the claim on an individual party and a total recovery of $990,000 for any single occurrence. Under the bill, these amounts are exclusive of interest, which may be awarded in addition to the amounts noted above. Current law caps damage recoveries at $150,000 for the claim on any individual party and a total recovery of $600,000 for any single occurrence, and does not allow for interest.

The proposed caps represent an inflation adjustment from the last times that the amounts were adjusted in 1979 and 1992. Beginning January 1, 2018, and every four years thereafter, the Attorney General is required to adjust the caps based on the Consumer Price Index for Denver-Boulder-Greeley. The adjusted amounts are to be published on the Attorney General's web site.

Background. Under current law, state and local government agencies in Colorado may defend negligence and other tort claims on the basis of limited immunity under the CGIA. Claims are made in the areas of general liability, automobile liability, and medical liability. As a matter of practice, some entities purchase excess insurance (surplus line) to cover damage awards that exceed primary coverage. For example, Adams State College maintains per occurrence and aggregate liability coverage of $1.0 million and $2.0 million, respectively.

Claims against the state may be compromised or settled by the State Claims Board (SCB). The SCB consists of the State Treasurer, the Attorney General, and the executive director of the Department of Personnel and Administration (DPA). The SCB may settle claims against the state and its agencies only to the limits established in the CGIA, which settlements are paid from the Risk Management Fund maintained by the DPA (also referenced as the state self-funded liability fund).

The Department of Law reported at its 2012 Joint Budget Committee (JBC) hearing that it keeps records of State Claims Board settlements for six years, and that 47 matters were settled with payments from the Risk Management Fund from 2006 to 2012. The report did not specify the number of settlements that involved multiple parties. Within the overall caseload of risk management claims, 0 to 4 percent of claims paid were awarded by the SCB during that time period.

Over the past 20 years there has been one settlement at the per occurrence cap of $600,000. There is a pending per occurrence cap claim that relates to the 2012 Lower North Fork Wildfire. In each of the last three fiscal years there was one claim paid at the individual cap of $150,000. While the number of claims filed during the last five years was relatively constant, the average claim paid varied from a low of $2,099 in FY 2011-12, to a high of $11,186 in FY 2010-11.

02:27 PM -- Geoff Wilson, representing the Colorado Municipal League, the Colorado Association of School Boards, the Special Districts Association, and Colorado Counties, Inc., testified in support of the bill. Mr. Wilson spoke about the discussions and compromise that went into drafting the bill. He responded to questions from the committee.

02:33 PM -- Maureen Ryan, representing herself, testified in support of the bill. Ms. Ryan spoke about the history of sovereign immunity in Colorado. She discussed the difficulties she faced in bringing a claim under the CGIA after her son's death in a skiing accident in Steamboat Springs.

02:44 PM

Ms. Ryan responded to questions from the committee about her case.

02:52 PM

Committee discussion continued regarding Ms. Ryan's case.

02:55 PM -- Scott Appel, representing himself, testified in support of the bill. Mr. Appel spoke about his experience as a victim of the Lower North Fork Wildfire. He expressed frustration with the CGIA claims process.

03:05 PM

Mr. Appel continued to discuss the circumstances of the Lower North Fork Wildfire. He responded to questions from the committee.


BILL:	SB13-023
TIME:	03:22:47 PM
MOVED:	Gardner
MOTION:	Refer Senate Bill 13-023 to the Committee of the Whole. The motion passed on a vote of 10-0, with 1 excused.
SECONDED:	Lawrence
		VOTE
	Buckner	Yes
	Court	Yes
	Gardner	Yes
	Lawrence	Yes
	McLachlan	Yes
	Murray	Yes
	Pettersen	Yes
	Salazar	Yes
	Wright	Yes
	Lee	Excused
	Kagan	Yes

Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS