Governmental claims liability limits.

12LSO-0023.C1

                                                         

FISCAL NOTE

 

This bill increases the liability limits for claims filed against governmental entities under the Wyoming Governmental Claims Act (WGCA) from $250,000 to $500,000 per claimant. This bill also increases the liability limits from $500,000 to $1,500,000 for all claims arising out of a single transaction or occurrence, thereby increasing the potential number of claimants that could receive the maximum amount. These increases would apply to all claims that accrue on or after July 1, 2012.

 

The fiscal impact, in the form of increased expenditures by the State Self Insurance Program (SSIP) from claims and attorneys fees, is indeterminable.

 

There may be an increase in settlement amounts, due to the increase in the limits allowed for a claim filed and the increase in the potential number of plaintiffs. However, the amount of this potential increase is unknown. Contractual services costs for additional expert witnesses and outside counsel could increase as well. It is also possible that the increased liability limits could result in an increase in the number of claims filed.

 

From FY 2007 through FY 2011, there have been three WGCA claims filed against the state which were settled at the current $250,000 liability limit.

 

 

It should be noted that the Governor is recommending a $2,500,000 reduction to the 2013-14 biennium standard budget object code 0254 - insurance premiums. This reduction will be made up of a reduction of $4,000,000 from the General Fund and an increase of $1,500,000 from internal service funds.

 

 

 

 

 

The fiscal impact to the judicial system is indeterminable due to an unknown number of cases.

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by:   Dean Temte, LSO  Phone: 777-7881

(Information provided by Tammy Hooper, Dept. of Admin. & Info.; 777-6796:

Joann Odendahl, Supreme Court, 777-7678)