(1) The risk manager may compromise and settle any claim for which the risk management fund may be liable: (a) if the settlement amount is $500,000 or less, on the risk manager's own authority; (b) if the settlement amount is more than $500,000 but not more than $1,000,000, upon the approval of the attorney general, or the attorney general's representative, and the executive director; (c) if the settlement amount is more than $1,000,000 but not more than $1,500,000, upon the governor's approval after receiving approval under Subsection (1)(b); (d) if the settlement amount is more than $1,500,000 but not more than $2,000,000, upon the Legislative Management Committee's approval after receiving approval under Subsections (1) (b) and (c); and (e) if the settlement amount is more than $2,000,000, upon the Legislature's approval after receiving approval under Subsections (1)(b), (c), and (d). (2) When seeking approval from a person under Subsection (1), the risk manager shall provide the person a list of each material term in the proposed settlement agreement. (3) (a) The risk manager shall, upon initiation of negotiations that the risk manager reasonably believes to have the potential to lead to a settlement requiring approval under Subsection (1) (d) or (e): (i) notify the Legislature's general counsel that negotiations have commenced; (ii) continue to keep the Legislature's general counsel informed of material developments in the negotiation process; and (iii) permit the Legislature's general counsel to attend negotiations. (b) The information that the risk manager shall provide to the Legislature's general counsel under Subsection (3)(a) includes: (i) the nature of the claim that is the subject of the settlement negotiations; (ii) the known facts that support the claim and the known facts that controvert the claim; and (iii) the risk manager's assessment of the potential liability under the claim. (c) A document, paper, electronic data, communication, or other material that the risk manager provides to legislative general counsel in the discharge of the risk manager's responsibility under this Subsection (3) may not be considered to be a record, as defined in Section 63G-2-103. (d) Information provided by the risk manager to legislative general counsel under Subsection (3) (a) and a communication between the risk manager and legislative general counsel under Subsection (3)(a) shall be considered to be evidence that is subject to Rule 408 of the Utah Rules of Evidence to the fullest extent possible. (e) Subsections (3)(c) and (d) apply regardless of whether: (i) the risk manager acts personally under this section or through counsel or another individual acting under the risk manager's direction; or (ii) other individuals under the direction of legislative general counsel are involved in the process described in this section. (4) The risk manager shall, for each settlement agreement approved under this section for an amount greater than $250,000 but less than $1,500,000, give notice of the settlement to the Legislative Management Committee by sending a settlement agreement report to the president of the Senate, the speaker of the House of Representatives, and the director of the Office of Legislative Research and General Counsel within three business days of executing the agreement.
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