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HF 3690

Claims arising out of a no-cost contract with a nonprofit organization included in the state and municipality tort claims liability limitations.

2025-2026 Regular Session Introduced by Roger Skraba

Bill extends tort liability caps to no-cost nonprofit contracts with Minnesota government to limit legal exposure for state and local entities using donated services.

Introduction and first reading, referred to Judiciary Finance and Civil Law
#claims #governmentaloperations-state #nonprofitandcharitableorganizations
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Bill Summary · HF 3690

Legislative bill overview

HF 3690 would extend Minnesota's tort claims liability limitations to include claims arising from no-cost contracts between the state/municipalities and nonprofit organizations. Currently, these liability caps apply to standard government contracts, but this bill specifically clarifies their application to arrangements where nonprofits provide services at no charge to the state or local government.

Why is this important

This bill affects the legal risk exposure for both government entities and nonprofits engaged in free service partnerships. It could encourage nonprofits to volunteer services without fear of unlimited liability exposure, while simultaneously protecting government budgets from potentially large tort settlements. However, it also limits the legal recourse available to individuals injured through these no-cost arrangements.

Potential points of contention

  • Liability protection scope: Critics may argue that capping liability for no-cost services could inadequately compensate injured parties, especially if a nonprofit's negligence causes serious harm
  • Nonprofit incentives: Questions about whether liability caps might reduce nonprofit accountability and safety standards when operating under no-cost agreements
  • Fairness concerns: Potential equity issues—injured parties from no-cost programs would have reduced recovery options compared to those harmed by standard government contracts or private services

Compiled from official sources — confirm details with the bill’s official record.

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