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Senate approves limits on some private‑school liability, requires insurance for nonprofit schools

Utah Senate · March 5, 2018
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Summary

After extended debate, the Senate passed the first substitute to SB 201, capping simple‑negligence physical‑injury damages for qualifying nonprofit private schools at the same levels as public districts, barring punitive damages for those physical injuries and requiring insurance coverage to qualify for the cap; gross‑negligence and intentional‑harm claims remain uncapped.

The Senate on final floor action approved the first substitute to SB 201, a measure that extends certain liability protections to nonprofit private schools that provide services similar to public districts. Sponsor Senator Weiler described the substitute as a response to concerns raised on the floor and in the hall and said the substitute aligns caps for physical injuries with those that apply to district public schools, requires participating nonprofit private schools to carry insurance, and prohibits punitive damages for covered physical injuries.

The bill’s supporters said private nonprofit schools save taxpayer dollars and that matching district caps for physical injuries is not arbitrary. “Private schools are saving the taxpayer millions of dollars,” the sponsor said on floor explanation. Opponents argued caps for private entities raise constitutional concerns and that limiting damages could reduce incentives for safety; several senators said they would prefer eliminating caps for government entities rather than extending caps to private institutions.

Key elements that passed on the floor: simple‑negligence physical‑injury damages will be capped at the same amounts as public school districts (debate referenced a $583,900 per‑person figure and per‑occurrence limits discussed on the floor), nonprofit private schools must maintain insurance to qualify, punitive damages are barred for covered physical injuries, and there is no cap on claims alleging gross negligence or intentional harm.

The Senate recorded the final roll-call and reported that the first substitute had passed (clerk recorded 15 yeas, 11 nays, 3 absent per the transcript), and the bill will be transmitted to the House for consideration.