THE BILL ITSELF
CS/CS/HB 529
Community-based Care Lead Agency and Subcontractor Liability
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A bill to be entitled
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An act relating to community-based care lead agency
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and subcontractor liability; amending s. 409.993,
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F.S.; revising legislative findings; removing
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liability insurance coverage requirements for
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community-based care lead agencies; removing liability
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insurance coverage requirements for subcontractors of
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community-based care lead agencies; removing a
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requirement to annually increase certain conditional
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limitations on damages by a specified percentage;
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providing applicability; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida: Section 1. Section 409.993, Florida Statutes, is amended
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to read:
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409.993 Lead agencies and subcontractor liability.—
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(1) FINDINGS.—
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(a) The Legislature finds that the state has traditionally
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provided foster care services to children who are the
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responsibility of the state. As such, foster children have not
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had the right to recover for injuries beyond the limitations
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specified in s. 768.28. The Legislature has determined that
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foster care and related services should be outsourced pursuant
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to this section and that the provision of such services is of
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paramount importance to the state. The purpose of such
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outsourcing is to increase the level of safety, security, and
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stability of children who are or become the responsibility of
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the state. One of the components necessary to secure a safe and
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stable environment for such children is the requirement that
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private providers maintain liability insurance. As such,
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insurance needs to be available and remain available to
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nongovernmental foster care and related services providers
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without the resources of such providers being significantly
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reduced by the cost of maintaining such insurance.
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(b) The Legislature further finds that, by requiring the
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following minimum levels of insurance, children in outsourced
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foster care and related services will gain increased protection
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and rights of recovery in the event of injury than currently
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provided in s. 768.28.
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(2) LEAD AGENCY LIABILITY.—
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(a) Other than an entity to which s. 768.28 applies, an
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eligible community-based care lead agency, or its employees or
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officers, except as otherwise provided in paragraph (b), shall,
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as a part of its contract, obtain a minimum of $1 million per
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occurrence with a policy period aggregate limit of $3 million in
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general liability insurance coverage. The lead agency must also
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require that staff who transport client children and families in
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their personal automobiles in order to carry out their job
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responsibilities obtain minimum bodily injury liability
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insurance in the amount of $100,000 per person per any one
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automobile accident, and subject to such limits for each person,
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$300,000 for all damages resulting from any one automobile
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accident, on their personal automobiles. In lieu of personal
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motor vehicle insurance, the lead agency's casualty, liability,
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or motor vehicle insurance carrier may provide nonowned
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automobile liability coverage. This insurance provides liability
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insurance for an automobile that the lead agency uses in
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connection with the lead agency's business but does not own,
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lease, rent, or borrow. This coverage includes an automobile
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owned by an employee of the lead agency or a member of the
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employee's household but only while the automobile is used in
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connection with the lead agency's business. The nonowned
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automobile coverage for the lead agency applies as excess
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coverage over any other collectible insurance. The personal
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automobile policy for the employee of the lead agency shall be
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primary insurance, and the nonowned automobile coverage of the
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lead agency acts as excess insurance to the primary insurance.
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The lead agency shall provide a minimum limit of $1 million in
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nonowned automobile coverage. In a tort action brought against
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an eligible community-based care such a lead agency, other than
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an entity to which s. 768.28 applies, or brought against an
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employee of such lead agency, net economic damages shall be
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limited to $2 million per liability claim and $200,000 per
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automobile claim, including, but not limited to, past and future
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medical expenses, wage loss, and loss of earning capacity,
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offset by any collateral source payment paid or payable. In any
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tort action brought against a lead agency, noneconomic damages
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shall be limited to $400,000 per claim. A claim claims bill may
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be brought on behalf of a claimant pursuant to s. 768.28 for any
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amount exceeding the limits specified in this paragraph. Any
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offset of collateral source payments made as of the date of the
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settlement or judgment shall be in accordance with s. 768.76.
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The lead agency is not liable in tort for the acts or omissions
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of its subcontractors or the officers, agents, or employees of
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its subcontractors.
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(b) The liability of a lead agency described in this
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section shall be exclusive and in place of all other liability
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of such lead agency. The same immunities from liability enjoyed
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by such lead agencies shall extend to each employee of the lead
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agency if he or she is acting in furtherance of the lead
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agency's business, including the transportation of clients
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served, as described in this subsection, in privately owned
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vehicles. Such immunities are not applicable to a lead agency or
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an employee who acts in a culpably negligent manner or with
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willful and wanton disregard or unprovoked physical aggression
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if such acts result in injury or death or such acts proximately
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cause such injury or death. Such immunities are not applicable
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to employees of the same lead agency when each is operating in
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the furtherance of the agency's business, but they are assigned
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primarily to unrelated work within private or public employment.
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(c) The same immunity provisions enjoyed by a lead agency
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also apply to any sole proprietor, partner, corporate officer or
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director, supervisor, or other person who, in the course and
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scope of his or her duties, acts in a managerial or policymaking
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capacity and the conduct that caused the alleged injury arose
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within the course and scope of those managerial or policymaking
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duties.
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(d) As used in this subsection and subsection (3), the
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term "culpably negligent manner" means reckless indifference or
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grossly careless disregard of human life.
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(3) SUBCONTRACTOR LIABILITY.—
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(a) A subcontractor of an eligible community-based care
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lead agency that is a direct provider of foster care and related
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services to children and families, and its employees or
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officers, except as otherwise provided in paragraph (c), must,
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as a part of its contract, obtain a minimum of $1 million per
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occurrence with a policy period aggregate limit of $3 million in
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general liability insurance coverage. The subcontractor of a
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lead agency must also require that staff who transport client
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children and families in their personal automobiles in order to
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carry out their job responsibilities obtain minimum bodily
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injury liability insurance in the amount of $100,000 per person
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in any one automobile accident, and subject to such limits for
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each person, $300,000 for all damages resulting from any one
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automobile accident, on their personal automobiles. In lieu of
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personal motor vehicle insurance, the subcontractor's casualty,
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liability, or motor vehicle insurance carrier may provide
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nonowned automobile liability coverage. This insurance provides
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liability insurance for automobiles that the subcontractor uses
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in connection with the subcontractor's business but does not
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own, lease, rent, or borrow. This coverage includes automobiles
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owned by the employees of the subcontractor or a member of the
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employee's household but only while the automobiles are used in
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connection with the subcontractor's business. The nonowned
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automobile coverage for the subcontractor applies as excess
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coverage over any other collectible insurance. The personal
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automobile policy for the employee of the subcontractor shall be
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primary insurance, and the nonowned automobile coverage of the
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subcontractor acts as excess insurance to the primary insurance.
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The subcontractor shall provide a minimum limit of $1 million in
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nonowned automobile coverage. In a tort action brought against a
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such subcontractor of an eligible community-based care lead
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agency that is a direct provider of foster care and related
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services to children and families, or brought against an
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employee of such subcontractor, net economic damages shall be
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limited to $2 million per liability claim and $200,000 per
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automobile claim, including, but not limited to, past and future
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medical expenses, wage loss, and loss of earning capacity,
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offset by any collateral source payment paid or payable. In a
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tort action brought against such subcontractor, noneconomic
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damages shall be limited to $400,000 per claim. A claim claims
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bill may be brought on behalf of a claimant pursuant to s.
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768.28 for any amount exceeding the limits specified in this
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paragraph. Any offset of collateral source payments made as of
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the date of the settlement or judgment shall be in accordance
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with s. 768.76.
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(b) A subcontractor of a lead agency that is a direct
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provider of foster care and related services is not liable for
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the acts or omissions of the lead agency; the department; or the
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officers, agents, or employees thereof. The limitation on
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liability established in this paragraph applies to contracts
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entered into or renewed after July 1, 2025.
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(c) The liability of a subcontractor of a lead agency that
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is a direct provider of foster care and related services as
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described in this section is exclusive and in place of all other
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liability of such provider. The same immunities from liability
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enjoyed by such subcontractor provider extend to each employee
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of the subcontractor when such employee is acting in furtherance
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of the subcontractor's business, including the transportation of
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clients served, as described in this subsection, in privately
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owned vehicles. Such immunities are not applicable to a
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subcontractor or an employee who acts in a culpably negligent
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manner or with willful and wanton disregard or unprovoked
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physical aggression if such acts result in injury or death or if
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such acts proximately cause such injury or death. Such
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immunities are not applicable to employees of the same
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subcontractor who are operating in the furtherance of the
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subcontractor's business but are assigned primarily to unrelated
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works within private or public employment. The same immunity
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provisions enjoyed by a subcontractor also apply to any sole
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proprietor, partner, corporate officer or director, supervisor,
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or other person who, in the course and scope of his or her
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duties, acts in a managerial or policymaking capacity and the
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conduct that caused the alleged injury arose within the course
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and scope of those managerial or policymaking duties.
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(4) LIMITATIONS ON DAMAGES.—The Legislature is cognizant
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of the increasing costs of goods and services each year and
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recognizes that fixing a set amount of compensation has the
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effect of a reduction in compensation each year. Accordingly,
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the conditional limitations on damages in this section shall be
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increased at the rate of 5 percent each year, prorated from July
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1, 2014, to the date at which damages subject to such
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limitations are awarded by final judgment or settlement.
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Section 2. When determining liability limits for a claim
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under this act, the limitations of liability in effect on the
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date the claim accrues shall apply to the claim.
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Section 3. This act shall take effect July 1, 2026.