Summary:

 Senate Bill 220 (SB 220) relates to risk management. It requires state agencies to make public the terms of legal settlement agreements and provides for loss prevention review teams.  SB 220 was in interim bill for the Legislative Finance Committee.  

Legislation Overview:

 Senate Bill 220 (SB 220) changes how state agencies must publish legal settlement agreements and provides for the creation of Loss Prevention Review Teams.  
First, SB 220 enacts a new section of the Sunshine Portal Transparency Act to require that when a state agency settles a legal claim without the assistance of the Risk Management Division, the agency must publish the terms of the settlement agreement on the Sunshine Portal within 30 days of the settlement. 
Second, the bill enacts a new section of the law that requires state agencies to notify the Risk Management Division (RMD) immediately upon becoming aware of an individual’s death or serious injury/substantial loss that might be caused by the agency. Substantial loss is loss in a possible amount greater than $250,000 or a lesser amount as determined by the director of RMD. 
A Loss Prevention Review Team (Review Team), appointed by the Director of RMD in conjunction with the defense counsel of RMD, must review the incident, evaluate its causes, and recommend steps to reduce the risk of further incidents.  After the final judgment or settlement and exhaustion of any appeal, the Review Team must submit a report to the Director of RMD and the head of the state agency regarding the team’s findings and recommendations.  Any documents created in connection with a loss review investigation are confidential until after the final disposition of any related claims. 
Lastly, the bill requires the Director of RMD to submit yearly reports to the legislature regarding loss prevention reviews. 
SB 220 is effective July 2025. 
 

Amendments:

 On February 25, 2025, the Senate made two floor amendments to SB 220/a.
Floor Amendment number one (1) adds that the requirement to publish legal settlement agreements also applies to public schools.  It also adds that state agencies and public schools must publish legal settlement agreements whether or not they were assisted by the Risk Management Division or the Public School Insurance Authority. 
Floor Amendment number two (2) removed SFC amendments which provided that a loss prevention review team is appointed only in matters where the claim is pending before the court and increased the value of what constitutes a “substantial loss” from $250,000 to $1,000,000. 


On February 19, 2025, the Senate Finance Committee amended SB 220/a by:
•	Clarifying that a loss prevention review team is appointed only in matters where the claim is pending before a court. 
•	Increasing the value of what constitutes a “substantial loss” from $250,000 to $1,000,000. 

On February 5, 2025, the Senate Judiciary Committee amended SB 220 by clarifying that the requirement to publish a settlement is on a state agency that settles a claim against that state agency with or without the assistance of the Risk Management Division.