GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	2 

HOUSE BILL 1534*
Committee Substitute Favorable 5/31/00

Short Title:  Amend State Tort Claims Law.	(Public)

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Sponsors:  

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Referred to:  

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May 16, 2000

A BILL TO BE ENTITLED
AN ACT TO INCREASE THE STATE TORT CLAIM LIMIT AND STATE LIABILITY UNDER THE DUTY TO DEFEND STATE EMPLOYEES' LIABILITY AND TO PROVIDE FOR THE FUNDING OF STATE TORT LIABILITY CLAIMS IN EXCESS OF ONE HUNDRED FIFTY THOUSAND DOLLARS, AS RECOMMENDED BY THE LEGISLATIVE RESEARCH COMMISSION.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 143-291(a) reads as rewritten:
"(a)	The North Carolina Industrial Commission is hereby constituted a court for the purpose of hearing and passing upon tort claims against the State Board of Education, the Board of Transportation, and all other departments, institutions and agencies of the State. The Industrial Commission shall determine whether or not each individual claim arose as a result of the negligence of any officer, employee, involuntary servant or agent of the State while acting within the scope of his office, employment, service, agency or authority, under circumstances where the State of North Carolina, if a private person, would be liable to the claimant in accordance with the laws of North Carolina. If the Commission finds that there was negligence on the part of an officer, employee, involuntary servant or agent of the State while acting within the scope of his office, employment, service, agency or authority, that was the proximate cause of the injury and that there was no contributory negligence on the part of the claimant or the person in whose behalf the claim is asserted, the Commission shall determine the amount of damages that the claimant is entitled to be paid, including medical and other expenses, and by appropriate order direct the payment of damages as provided in subsection (a1) of this section, but in no event shall the amount of damages awarded exceed the amounts authorized in G.S. 143-299.2 cumulatively to all claimants on account of injury and damage to any one person arising out of a single occurrence.  Community colleges and technical colleges shall be deemed State agencies for purposes of this Article. The fact that a claim may be brought under more than one Article under this Chapter shall not increase the foregoing maximum liability of the State."
Section 2.  G.S. 143-291 is amended by adding a new subsection to read:
"( a1)	The unit of State government that employed the employee at the time the cause of action arose shall pay the first one hundred fifty thousand dollars ($150,000) of liability, and the balance of any payment owed shall be paid from the State Excess Liability Fund under G.S. 143-299.4."
Section 3.  G.S. 143-291.3 reads as rewritten:
"§ 143-291.3.  Counterclaims by State.
The filing of a claim under this Article shall constitute consent by the 	plaintiff to the jurisdiction of the Industrial Commission to hear and determine any counterclaim of the maximum amount authorized for a claim in G.S. 143-299.2 or less that may be filed on behalf of a State department, institution or agency, or a county or city board of education. A final award of the Industrial Commission awarding damages on a counterclaim shall be filed with the Clerk of the Superior Court of the county where the case was heard. These awards shall be docketed and shall be enforceable in the same manner as judgments of the General Court of Justice. Notwithstanding the provisions of Rule 12 of the Rules of Civil Procedure, nothing in this section shall require the filing of a counterclaim."
Section 4.  G.S.  143-299.2 reads as rewritten:
"§ 143-299.2.  Limitation on payments by the State.
(a)	The maximum amount which the State may pay cumulatively to all claimants on account of injury and damage to any one person arising out of any one occurrence, whether the claim or claims are brought under this Article, or Article 31A or Article 31B of this Chapter, shall be five hundred thousand dollars ($500,000), less any commercial liability insurance purchased by the State and applicable to the claim or claims under G.S. 143-291(b), 143-300.6(c), or 143-300.16(c).
(b)	The fact that a claim or claims may be brought under more than one Article under this Chapter shall not increase the above maximum liability of the State."
Section 5.  Article 31 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-299.4.  State Excess Liability Fund.
(a)	Fund Established. – There is established the State Excess Liability Fund as a nonreverting restricted reserve fund in the Office of State Budget and Management.
(b)	Fund Earnings, Assets, and Balances. – The State Treasurer shall hold the Fund separate and apart from all other moneys, funds, and accounts. Investment earnings credited to the assets of the Fund shall become part of the Fund. Any balance remaining in the Fund at the end of any fiscal year shall not revert but shall be carried forward in the Fund for the next succeeding fiscal year. Payments from the Fund shall be made on the warrant of the Attorney General.
(c)	Fund Purposes. – Moneys from the Fund may be used only for the purpose of paying the balance of claims in excess of one hundred fifty thousand dollars ($150,000) per claim arising under this Article, or Article 31A or 31B of this Chapter, on account of injury or damage to any one person.
(d)	Definition. – For purposes of this section, the term ‘Fund' means the State Excess Liability Fund."
Section 6.  G.S. 143-300.1(c) reads as rewritten:
	"(c)	In the event that the Industrial Commission awards damages against any county or city board of education under this section, the Attorney General shall draw a voucher for the amount required to pay the award. The funds necessary to cover the first one hundred fifty thousand dollars ($150,000) of liability per claim for claims against county and city boards of education for accidents involving school buses and school transportation service vehicles shall be made available from funds appropriated to the State Board of Education.  The balance of any liability owed shall be paid from the State Excess Liability Fund under G.S. 143-299.4. Neither the county or city boards of education, or the county or city administrative unit shall be liable for the payment of any award made pursuant to the provisions of this section in excess of the amount paid upon a voucher by the Attorney General. Settlement and payment may be made by the Attorney General as provided in G.S. 143-295."
Section 7.  G.S. 143-300.1(d) reads as rewritten:
"(d)	The Attorney General may defend any civil action brought against the driver, transportation safety assistant, or monitor of a public school bus or school transportation service vehicle or school bus maintenance mechanic when the driver or mechanic is employed and paid by the local school administrative unit, when the monitor is acting in accordance with G.S. 115C-245(d), when the transportation safety assistant is acting in accordance with G.S. 115C-245(e), or when the driver is an unpaid school bus driver trainee under the supervision of an authorized employee of the Department of Transportation, Division of Motor Vehicles, or an authorized employee of a county or city board of education or administrative unit.  The Attorney General may afford this defense through the use of a member of his staff or, in his discretion, employ private counsel. The Attorney General is authorized to pay any judgment rendered in the civil action not to exceed the limit provided under the Tort Claims Act.  The funds necessary to cover the first one hundred fifty thousand dollars ($150,000) of liability per claim shall be made available from funds appropriated to the State Board of Education.  The balance of any liability owed shall be paid from the State Excess Liability Fund under G.S. 143-299.4.   The Attorney General may compromise and settle any claim covered by this section to the extent that he finds the same to be valid, up to the limit provided in the Tort Claims Act, provided that the authority granted in this subsection shall be limited to only those claims that would be within the jurisdiction of the Industrial Commission under the Tort Claims Act."
Section 8.  G.S. 143-300.6(a) reads as rewritten:
"(a)	Payment of Judgments and Settlements.  In an action to which this Article applies, the State shall pay (i) a final judgment awarded in a court of competent jurisdiction against a State employee or (ii) the amount due under a settlement of the action under this section.  The unit of State government that employed the employee shall pay the first one hundred fifty thousand dollars ($150,000) of liability, and the balance of any payment owed shall be paid from the State Excess Liability Fund under G.S. 143-299.4.  This section does not waive the sovereign immunity of the State with respect to any claim.  A payment of a judgment or settlement of a claim against a State employee or several State employees as joint tort-feasors may not exceed the amount payable for one claim under the Tort Claims Act."
Section 9.  G.S. 143-300.16(a) reads as rewritten:
"(a)	Any final judgment awarded against an employee in an action that meets the requirements of G.S. 143-300.14, or any amount payable under a settlement of the action, shall be paid by the State.  The first one hundred fifty thousand dollars ($150,000) of liability shall be paid from funds appropriated to the State Board of Education for the payment of State Tort Claims.  The balance of any payment owed shall be paid from the State Excess Liability Fund under G.S. 143-299.4. No payment shall be made from either funds appropriated to the State Board of Education or the State Excess Liability Fund for any judgment for punitive damages. Nothing in this section shall be deemed to waive the sovereign immunity of the State with respect to a claim covered under this section or authorize the payment of any judgment or settlement against a public school employee in excess of the limit provided in the Tort Claims Act."
Section 10.  Notwithstanding the limitations of G.S. 143-291.3, for claims pending on the effective date of this act, any counterclaim made by the State under G.S. 143-291.3 shall not exceed the greater of one hundred fifty thousand dollars ($150,000) or the amount of the plaintiff's claim.
Section 11.  There is appropriated from the General Fund to the State Excess Liability Fund the sum of two million six hundred forty thousand dollars ($2,640,000) for fiscal year 2000-2001.
Section 12.  This act becomes effective July 1, 2000.  Sections 1, 2, 4, 5, 6, 7, 8, 9, and 10 apply to claims or actions pending on or after the effective date.  Section 3 applies to claims filed on or after the effective date.