Bill of Interest HB0513/SB1105
There has been a bill of interest filed in both the House and Senate of the Tennessee State Legislature. HB0513/SB1105. The State Comptrollers office has the cost of this bill at over $5,000,000 to local governments. The interesting part of this bill is that it would be back dated to July 1, 2007 and end July 1, 2009.
"AN ACT to amend Tennessee Code Annotated, Title 29, Chapter 20, relative to governmental tort liability.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 29-20-403(b)(4), is amended by deleting the final sentence and by substituting instead the following:
The provisions of this subdivision (b)(4) shall apply to any action arising on or after July 1, 2007, but before July 1, 2009.
SECTION 2. Tennessee Code Annotated, Section 29-20-403(b), is amended by adding the following language as a new, appropriately designated subdivision:
(5) Minimum limits of not less than four hundred twenty-five thousand dollars ($425,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act; and not less than one million dollars ($1,000,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act; and not less than one hundred forty thousand dollars ($140,000) for injury or destruction of property of others in any one (1) accident, occurrence or act. The provisions of this subdivision (b)(5) shall apply to any action arising on or after July 1, 2009.
SECTION 3. This act shall take effect upon becoming a law, the public welfare requiring"
I'm not sure I really understand this. Please elaborate.
My first impression is this seems to be an unfair requirement.
Am I to understand the federal government is making this a requirement for taking federal funds?
Please share more information.
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This is a State bill that will increase the tort liability limits between 07/01/07 and 07/01/09. The amounts that it would increase during this time is property and personal liability limits. This change would allow or possibly require County government to revisit each settlement during this period and pay up to the new maximum limits. According to the State of Tennessee comptrollers estimates it could mean as much at $5,000,000 per governmental entity in Tennessee.
I should mention this is not the only bill related to tort liability limits there are almost a dozen in total.
Mike
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