Chapter 6

5 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 1 CHAPTER 6 GOVERNMENT CLAIMS ACT SOURCE: The Government Claims Act was added to the Government Code of Guam by P.L. 03-078 (June 29, 19 56), as Chapter 6 of Title VII, and originally entitled 'Cl aims Against the Government of Guam.' The entire chapter was repeale d and added by P.L. 09-175 (March 14, 1968 and by P.L. 17-029:1 (Nov. 9, 1983). The entire chapter was codified as part of T itle 5 GCA during or after the 17th Guam Legislature. NOTE: Unless otherwise specified, the Comments found in this Chapter are the original Comments included in P.L. 17-029 and published in the Session Laws of the 17th Guam Legi slature and have been retained in this Chapter as part of the l egislative history. Article 1. Scope and Definitions. Article 2. Procedure for Filing Claims and Actions. Article 3. Liability and Insurance. Article 4. Payments. ARTICLE 1 SCOPE AND DEFINITIONS § 6101. Short Title. § 6102. Coverage of Chapter. § 6103. Definitions. § 6104. Exclusions. § 6105. Waiver of Immunity. § 6106. Limitations on Actions and Filing. § 6107. Continuation of Law. § 6108. This Chapter Applicable to All Claims. § 6101. Short Title.

efinitions. § 6104. Exclusions. § 6105. Waiver of Immunity. § 6106. Limitations on Actions and Filing. § 6107. Continuation of Law. § 6108. This Chapter Applicable to All Claims. § 6101. Short Title. This Chapter shall be known as the Government Clai ms Act. SOURCE: GC § 6500.00. Repealed and reenacted by P.L. 17-02 9:1 (Nov. 9, 1983). Codified as 5 GCA § 6101. COMMENT: The name of this Chapter is unchanged since the fundamental purpose of this Act is to continue the policies of the former Chapter, but clarifying the relationship between th e various government departments, line and autonomous agencies. Also, th is Chapter will COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 2 authorize insurance to be purchased for both the go vernment and its employees. However, it is to be deemed a continuati on of the old law, not a departure from it. § 6102. Coverage of Chapter. This Chapter applies, except as provided in Sectio n 6104 of the Chapter, to the entire government of Guam, as s pecifically stated herein. No government agency, whether denom inated as a line department, an agency or a public corporation, is excluded from the scope of this Chapter.

ire government of Guam, as s pecifically stated herein. No government agency, whether denom inated as a line department, an agency or a public corporation, is excluded from the scope of this Chapter. The fact that an a gency or instrumentality has or has not the right to sue or to be sued in its own name does not exclude such agency or instrument ality from the scope of this Chapter. For purposes of this Cha pter, reference to an >autonomous agency = shall include public corporations, autonomous and semi-autonomous agencies, including the Antonio B. Won Pat International Airport, Guam; the Guam Telephone Authority (but only as to claims that do not arise from the activities of any private owner or operator of the Telephone Authority); the Guam Power Authority; the Guam Hous ing & Urban Renewal Authority; the Guam Housing Corporati on; the Guam Economic Development and Commerce Authority; t he Guam Memorial Hospital Authority; the University of Guam; the Jose D. Leon Guerrero Commercial Port; the Guam Co mmunity College; the Guam Waterworks Authority; the Governm ent of Guam Retirement Fund; and the Guam Visitors Bureau. SOURCE: GC § 6500.01. Repealed and reenacted by P.L.

ommercial Port; the Guam Co mmunity College; the Guam Waterworks Authority; the Governm ent of Guam Retirement Fund; and the Guam Visitors Bureau. SOURCE: GC § 6500.01. Repealed and reenacted by P.L. 17-02 9:1 (Nov. 9, 1983). Codified as 5 GCA § 6102. Amended by P.L. 27-142:6. COMMENT: A number of law suits have been instituted against the Guam Memorial Hospital and the Guam Power Authority claiming exemption, in whole or in part, from the former Gov ernment Claims Act. No case has gone to appeal on this point. Existing law is extremely unclear. Section § 6500.19, as amended, of the form er law indicates that the procedure of the Act should apply to all agenci es, but payment be made from the accounts of the stated autonomous or semi-autonomous agencies. Yet the law of the individual agencies st ates that they may sue and be sued. The Superior Court, in some cases, has interpreted the latter as prevailing over the Claims Act, so as to give no sovereign immunity whatsoever to the autonomous agencies. This Section makes clear that this Act covers the entire government, with no exce ptions.

as prevailing over the Claims Act, so as to give no sovereign immunity whatsoever to the autonomous agencies. This Section makes clear that this Act covers the entire government, with no exce ptions. 2013 NOTE: This section was originally entitled, 'Waiver of Immunity.' Repealed and reenacted by P.L. 17-029:1 (Nov. 9, 1983) as GC § 6500.04. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 3 § 6103. Definitions. As used in this Chapter, the following words and p hrases shall have the meaning stated herein, unless such m eaning is clearly inapplicable in the context: (a) Government of Guam shall include all agencies, departments, instrumentalities, public corporations , and all other entities of the government, no matter how des ignated, and whether or not such agencies may sue or be sued in their own name. (b) Chief Claims Officer means the Attorney General of Guam, and for the autonomous agencies the Attorn ey General shall designate as claims officers those pe rsons so designated by the Board of such agency, or by its c hief executive officer if there be no Board. (c) Line Agency means any department, agency, or instrumentality of the Government of Guam which

ns so designated by the Board of such agency, or by its c hief executive officer if there be no Board. (c) Line Agency means any department, agency, or instrumentality of the Government of Guam which is funded by an annual appropriation from the Legislat ure. Such appropriations do not include subsidies. (d) Autonomous agency means any department, agency, or instrumentality which generates, or is i ntended to generate, as evidenced in law, all of its own opera ting revenues apart from annual appropriations from the General Fund. Annual appropriations do not include amounts appropriated to line agencies to pay for services r endered by autonomous agencies. Subsidies appropriated from th e General Fund to an autonomous agency, whether or no t annually appropriated, shall not mean that an auton omous agency becomes a line agency for purposes of this C hapter. (e) House Patient means a patient who presents themselves to Guam Memorial Hospital who does not h ave a private practitioner or who does not request and/ or is unable to identify an accepting practitioner. For the purposes of the Government Claims Act and for Agent for Hospital Reimbursement, ‘House Patient’ designation is

or who does not request and/ or is unable to identify an accepting practitioner. For the purposes of the Government Claims Act and for Agent for Hospital Reimbursement, ‘House Patient’ designation is given to the care provided by agents of the hospita l. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 4 SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.02 . Codified as 5 GCA § 6103. Subsection (e) added by P .L. 29-076:2 (May 9, 2008). COMMENT: This section is added to define the terms that wil l be used in this Chapter. The organization of the Chapter wi ll treat the line agencies separately from the autonomous agencies as far as payment is concerned, but unify the procedure by which claims may be made, so that a person does not have to face one procedure for a line agency and another for each autonomous agency. § 6104. Exclusions. This Chapter shall not apply to any claim pertaini ng to any tax refund, the Workers Compensation Law, or the Go vernment of Guam Retirement Fund. SOURCE: GC § 6500.02. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.03. Codified as 5 GCA § 6104. COMMENT: Prior law is continued here.

ompensation Law, or the Go vernment of Guam Retirement Fund. SOURCE: GC § 6500.02. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.03. Codified as 5 GCA § 6104. COMMENT: Prior law is continued here. However, the Commerci al Port is treated as any other autonomous agency unde r this Chapter. § 6105. Waiver of Immunity. Pursuant to Section 3 of the Organic Act of Guam, the Government of Guam hereby waives immunity from suit , but only as hereinafter provided: (a) for all expenses incurred in reliance upon a co ntract to which the Government of Guam is a party, but if the contract has been substantially completed, expectat ion damages may be awarded; (b) for claims in tort, arising from the negligent acts of its employees acting for and at the direction of th e government of Guam, even though occurring in an act ivity to which private persons do not engage. For the pur poses of this chapter, any officer or enlisted person of the Guam National Guard on territorial duty or any nursing s tudent acting for and at the direction of the University o f Guam or of the Guam Community College shall be deemed an employee of the government.

m National Guard on territorial duty or any nursing s tudent acting for and at the direction of the University o f Guam or of the Guam Community College shall be deemed an employee of the government. (c) The Government of Guam shall not be liable for claims arising from an exercise of discretion in ma king policy. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 5 SOURCE: GC § 6500.01 as amended by P.L. 14-050. Subsection (b) amended by P.L. 16-018 (June 5, 1981). Added by P.L . 17-029:1 (Nov. 9, 1983) as GC § 6500.04. Subsection (b) amended by P.L. 21-137:1 (Sept. 29, 1992). Codified as 5 GCA § 6105. CROSS-REFERENCES: See 9 GCA § 80.93 for a declaration of absolute immunity from claims by persons who are se rving in a community service program as a part of a criminal s entence. COMMENT: Again, this Section is continued from prior law, b ut the source of its authority, the Organic Act, is emphas ized. Some suits have, unsuccessfully, tried to challenge this law on the basis of various state court rulings. However, those states do not have th e constitutional equivalent of § 3 of the Organic Act. This Section emphasizes the law for clarity.

hallenge this law on the basis of various state court rulings. However, those states do not have th e constitutional equivalent of § 3 of the Organic Act. This Section emphasizes the law for clarity. It cannot create or amend the Organic Act . § 6106. Limitations on Actions and Filing. (a) All claims under this Act must be filed within 18 months from the date the claim arose, but any claims timel y filed under the predecessor of this Act shall be considered to have been timely filed under this Chapter. (b) Every action filed under this Chapter shall be barred unless commenced within 18 months from the time the notice that the claim was rejected was served as provided in Article 2 of this Chapter, or within 24 months after the claim w as filed in cases where the government does not reject the clai m. SOURCE: GC § 6500.05 (as to subsection (a)) and § 6500.21 (as to subsection (b). Added by P.L. 17-029:1 (Nov. 9, 198 3) as § 6500.05. Codified as 5 GCA § 6106. COMMENT: The 15th Guam Legislature amended the limitations applicable to this Chapter to be equivalent to the limitations applicable to actions in general.

3) as § 6500.05. Codified as 5 GCA § 6106. COMMENT: The 15th Guam Legislature amended the limitations applicable to this Chapter to be equivalent to the limitations applicable to actions in general. However, that amendment failed to address the issue of time of filing a claim as it relates to filing a n action on a rejected claim. These two limitations are closely related, b oth for the government and for the claimant. Therefore, this section takes a middle ground, giving the claimant 18 months from the time the cla im arose to file his claim and another 18 months after the claim was rej ected or 24 months after the claim was filed in cases where the govern ment takes no action on his claim. This gives both parties a reasonable and certain time within which to file both claims and actions against all g overnment entities. § 6107. Continuation of Law. This Chapter shall be deemed a continuation of the former law so far as sections of the former law are continued unamended. No claim which accrued under the former law shall be i ncreased, COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 6 lessened, or extinguished by any provision of this law, but if the claim has

ch accrued under the former law shall be i ncreased, COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 6 lessened, or extinguished by any provision of this law, but if the claim has not been filed or suit commenced, the pro cedures provided in Article 2 and the methods of payment pr escribed in Article 4 shall apply to said claim. Sections of th e former Government Claims Act amended by this Chapter shall be deemed amendments only and not new enactments. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as GC § 6500 .06. Codified as 5 GCA § 6107. COMMENT: This section makes clear that this Chapter merely amends and clarifies the former law. The basic philosophy of the former Government Claims Act is not changed. § 6108. This Chapter Applicable to All Claims. This Chapter shall apply to all pending litigation in the courts of Guam, or which are on appeal, which were commenc ed without first filing an administrative claim as would be re quired by this Chapter had it applied at the time the suit was fil ed. If such pending litigation was timely filed under the laws existing at the time of filing, the plaintiffs may, notwithstanding § 6106 of this Chapter, file a claim

ed at the time the suit was fil ed. If such pending litigation was timely filed under the laws existing at the time of filing, the plaintiffs may, notwithstanding § 6106 of this Chapter, file a claim under this Chapter, but such claims sh all not be filed later than June 30, 1984, or not later than six mon ths after the effective date of this Chapter, whichever is later. SOURCE: Added by P.L. 17-029 (Nov. 9, 1983) as GC § 6500.0 7. Codified as 5 GCA § 6107. 1986 NOTE: According to the Compiler’s Notes, this section was added by the Legislature after the Second Reading of the bill. The purpose of this section is to take all suits th en filed against the various autonomous agencies out of the courts, no m atter where in the process they were, and restart them in the manner p rescribed by this Chapter. There was considerable opinion in the Legi slature at the time of passage that the court opinions declaring that no s overeign immunity existed in the affected autonomous agencies was wro ng, and should not be allowed to continue. This section deprives the c ourts of jurisdiction in those pending cases, mostly against the Guam Memori al Hospital Authority, but permits the claims to go

ng, and should not be allowed to continue. This section deprives the c ourts of jurisdiction in those pending cases, mostly against the Guam Memori al Hospital Authority, but permits the claims to go forward und er this Chapter. ---------- ARTICLE 2 PROCEDURE FOR FILING CLAIMS AND ACTIONS § 6201. Procedure for Filing Claims. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 7 § 6202. Claim to be Signed and Verified. § 6203. Investigations. § 6204. Ancillary Powers of Claims Officer. § 6205. Hearing. § 6206. Settlement of Claim Before Action. § 6207. False Swearing. § 6208. Action Against the Government. § 6208.1. Rejecting a Claim. § 6208.2. Outside Adjuster Authorized. § 6209. Procedure in Court. § 6210. Settlement of Suit. § 6211. Appeals. § 6212. Limitation on Proceedings. § 6213. Limitation on Awards in Actions. § 6201. Procedure for Filing Claims. All claims shall be filed in duplicate with the Cl aims Officers responsible for the department or agency a gainst which the claim is made. Each claim shall contain the fol lowing information: (a) The complete name and address of the claimant.

the Cl aims Officers responsible for the department or agency a gainst which the claim is made. Each claim shall contain the fol lowing information: (a) The complete name and address of the claimant. If the claimant should change his address, or retain a n attorney to whom all notices should be sent after filing the claim, he shall file an amendment to the claim, so stating th e changes. If no amendment is filed, all notices sent to the a ddress stated in the claim shall be deemed properly sent a nd served. Notice, if sent by mail, shall be return re ceipt, certified or registered mail. (b) The amount of damage or other relief claimed. (c) A concise statement of the facts upon which the claim is made, including the time, place and other circumstances and the department or agency or fund of the government of Guam that is concerned. (d) A copy of any contract or other instrument in writing upon which the claim is based. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 8 (e) A statement of whether or not the claimant has received any payment on account of such claim, and if so, the amount received.

COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 8 (e) A statement of whether or not the claimant has received any payment on account of such claim, and if so, the amount received. (f) A statement whether or not any third person has any interest in the claim, and if so, the name and addr ess of such person having such interest and the nature of such interest. (g) If the claimant is an executor, administrator, guardian, or other representative appointed by a ju dicial tribunal, a duly certified copy of the record of ap pointment. (h) A statement as to whether or not the claimant h as any insurance covering the damage alleged to have b een suffered by him or her, and of any payments, if any , he or she has received from such insurance carrier. SOURCE: GC § 6500.03. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.10. Codified as 5 GCA § 6201. Amended by P.L. 27-142:2. COMMENT: With the aim of separating the claims of autonomou s agencies from those of line agencies, and from the Claims Fund, this section requires that claims filed be filed with th e Claims Officer of the agency against whom the claim is made.

of autonomou s agencies from those of line agencies, and from the Claims Fund, this section requires that claims filed be filed with th e Claims Officer of the agency against whom the claim is made. This separat es the filing of claims against autonomous agencies from the Attorne y General, who is responsible for all line agencies and is their Clai ms Officer. From the time of the claim is filed with the autonomous agen cy until its settlement, only the autonomous agency will be involved, unless , of course, the government of Guam is also a party. § 6202. Claim to be Signed and Verified. All claims filed pursuant to this Chapter shall be signed by the claimant, his agent or his legal guardian, and verified by him, or may be signed as being under the penalties presc ribed for perjury. SOURCE: GC § 6500.04. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.11. Codified as 5 GCA § 6202. CROSS-REFERENCES: 9 GCA § 52.10(f)(2) [Penalties for Perjury]. Also, 6 GCA § 4208 regarding the form for unsworn d eclarations. COMMENT: (1) The first words of this Section are changed to 'All claims' to show that this Section refers to claims made both to the Attorney General and to the Claims

form for unsworn d eclarations. COMMENT: (1) The first words of this Section are changed to 'All claims' to show that this Section refers to claims made both to the Attorney General and to the Claims Officers of the appropriate autonomous agencies. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 9 (2) The claims made may be either sworn to before a Notary Public or signed 'under the penalty for perjury' as permit ted by the Criminal Code (9 GCA § 52.10(f)(2). This should eliminate on e unnecessary bit of red tape for claimants. § 6203. Investigations. The Claims Officer shall cause each claim received by him to be investigated to determine its merits. SOURCE: GC § 6500.06. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.12. Codified as 5 GCA § 6203. COMMENT: The modification is to refer to 'Claims Officers.' Thus, the Attorney General investigates claims received b y him against the line agencies. Each Claims Officer within his own autono mous agency will investigate claims made against that agency. If, an d when, he refers the claim to an attorney for evaluation, he will do so according to the practice of the agency involved and will give it to the atto rney

ate claims made against that agency. If, an d when, he refers the claim to an attorney for evaluation, he will do so according to the practice of the agency involved and will give it to the atto rney responsible for that agency, whether it be the Attorney General or a pri vate attorney. § 6204. Ancillary Powers of Claims Officer. In making his investigation, the Claims Officer, o r person designated by him within the agency, shall have the authority to administer oaths to claimants and witnesses, and to require the production of any books, records or documents that may be material or relative as evidence in connection with the claim. SOURCE: GC § 6500.07. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.13. Codified as 5 GCA § 6204. § 6205. Hearing. The Claims Officer, or a person designated by him, may, at his discretion, conduct a formal hearing in connect ion with the investigation of any claim. SOURCE: GC § 6500.09. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.14. Codified as 5 GCA § 6205. § 6206. Settlement of Claim Before Action. (a) The Attorney General, subject to the approval of I Maga’lahen Guåhan for settlements of over Fifteen Thousand Dollars ($15,000.00) for a

s 5 GCA § 6205. § 6206. Settlement of Claim Before Action. (a) The Attorney General, subject to the approval of I Maga’lahen Guåhan for settlements of over Fifteen Thousand Dollars ($15,000.00) for a claim for damages to a m otor vehicle incurred in an accident involving the motor vehicle of the claimant filed exclusively pursuant to § 6105(b), w here the aggregate of the claim for the motor vehicle of the claimant, not COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 10 including any claim, or any portion of the claim, f or personal injury, is for less than Fifteen Thousand Dollars ( $15,000.00); and Three Thousand Dollars ($3,000.00) for all othe r claims, may settle for money damages any claim against a li ne agency or autonomous agency under this Chapter. The Attorney General may recommend other relief, if appropriate. (b) In the case of autonomous agencies, the Claims Officer, subject to the approval of the Board, the Attorney General and I Maga’lahen Guåhan , or if there be no Board, the highest official of such agency, the Attorney General and I Maga’lahen Guåhan for settlements of over Fifteen Thousand Dollars ($ 15,000.00) for a claim for damages to a

or if there be no Board, the highest official of such agency, the Attorney General and I Maga’lahen Guåhan for settlements of over Fifteen Thousand Dollars ($ 15,000.00) for a claim for damages to a motor vehicle incurred in an accident involving the motor vehicle of the claiman t filed exclusively pursuant to § 6105(b), where the aggreg ate of the claim for the motor vehicle of the claimant, not in cluding any claim, or any portion of the claim, for personal in jury, is for less than Fifteen Thousand Dollars ($15,000.00); and Thr ee Thousand Dollars ($3,000.00) for all other claims, may settle for money damages any claim filed against said agency u nder this Chapter. The Attorney General may recommend other relief as may be appropriate. (c) Settlement of any claims concerning the governm ent of Guam shall not be sealed and shall be open to public inspection. The Attorney General or the attorney for the agency shall send a copy of each settlement to the Speaker of I Liheslaturan Guåhan within five (5) days of approval by I Maga’lahen Guåhan . (d) Approved settlements shall not be subject to f iscal year limitations on the authority of government agencies to make full payments in

an within five (5) days of approval by I Maga’lahen Guåhan . (d) Approved settlements shall not be subject to f iscal year limitations on the authority of government agencies to make full payments in resolution of a claim. SOURCE: GC § 6500.10. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.15. Codified as 5 GCA § 6206. Amended by P.L. 25-130:2 (May 22, 2000). Subsection (c) added by P.L. 32-076:2 ( Nov. 27, 2013). Subsection (d) added by P.L. 33-185:22 (Sept. 10, 2 016). COMMENT: This Section separates the line agencies from the autonomous agencies as far as settlement goes. Subs ection (a) continues the procedure, with amendments, as is now law with respect to the line agencies. Subsection (b) follows the same procedure , but makes the approving authority the governing board of the auto nomous agency as well as the Attorney General and the Governor. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 11 The dollar limit in former law has been eliminated from this Section. There is no reason, particularly with inflation and court awards being as high as they are, for such a limitation, especially when the approval of the Governor is required for all settlements

ection. There is no reason, particularly with inflation and court awards being as high as they are, for such a limitation, especially when the approval of the Governor is required for all settlements above $3,0 00. Approval by the governing board is required for the settlement of a utonomous agency claims as well as the Attorney General and the Gove rnor. We should not encourage court suits by such limitation when litig ation could be avoided. 1986 NOTE: (Original) This section separates the line agencie s from the autonomous agencies as far as settlement goes. Subs ection (a) continues the former procedure, with amendments. Subsection ( b) follows the same procedure with respect to autonomous agencies, but adds their board or chief officer as an approving authority for settlem ents of over $3,000. Former law, with a short exception, provided that t he Attorney General could approve settlements only if they were under $3,000. This section retains the limit of $3,000 for the Attorne y General or Claims Officer acting alone, but permits greater settlemen ts with the approval of the Governor, in the case of line agencies, and the Board or chief officer, Attorney General and Governor

General or Claims Officer acting alone, but permits greater settlemen ts with the approval of the Governor, in the case of line agencies, and the Board or chief officer, Attorney General and Governor in the case of autono mous agencies. This should encourage settlements before court suits, bu t keep the policy makers aware of the settlement and permit them to b ring other policy considerations into the larger settlements. We shou ld not encourage suits where settlement is possible. Settlements involving other than money may not be a pproved by the Attorney General or Claims Officer, but only re commended to those having the power to make the necessary agreements. Neither Attorney General, nor the individual Claims Officer has auth ority to bind other departments, or even the director of the agency inv olved to make changes in policy or procedure. § 6207. False Swearing. All claimants and witnesses concerning any claim u nder this Chapter are subject to the penalties and provisions of Chapter 52 of Title 9 Guam Code Annotated with respect to fals e swearing and perjury. SOURCE: GC § 6500.08. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.16. Codified as 5 GCA § 6207. § 6208.

of Chapter 52 of Title 9 Guam Code Annotated with respect to fals e swearing and perjury. SOURCE: GC § 6500.08. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.16. Codified as 5 GCA § 6207. § 6208. Action Against the Government. A claimant may institute an action in contract or tort, for money damages only, against the government of Guam in the event the claim is made against a line agency, or a gainst the specific agency involved in the event the claim is made against COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 12 an autonomous agency, in the Superior Court of Guam , provided that: (a) The claimant has been notified by registered or certified mail, return receipt requested, that his claim has been rejected in whole or in part; or (b) Thirty (30) calendar days have elapsed since th e date of filing a claim for damages to a motor vehic le incurred in an accident involving the motor vehicle of the claimant filed exclusively pursuant to § 6105(b), w here the aggregate of the claim for the motor vehicle of the claimant, not including any claim, or any portion of the clai m, for personal injury, is for less than Fifteen Thousand Dollars ($15,000.00); or six

ggregate of the claim for the motor vehicle of the claimant, not including any claim, or any portion of the clai m, for personal injury, is for less than Fifteen Thousand Dollars ($15,000.00); or six (6) months have elapsed since the date of filing any other claim with the Claims Officer. SOURCE: GC § 6500.11. Added by P.L. 17-029:1(Nov. 9, 1983 ) as § 6500.17. Codified as 5 GCA § 6208. Subsection (b) a mended by P.L. 25- 130:3. COMMENT: There have been questions as to whether the govern ment of Guam, as an entity, may be sued when an autonomo us agency is the one against whom the claim is filed. This Section c lears up that doubt by making it clear that such is not the case. Subsection (a) has been modernized to reflect curre nt mail practices. See also 1 GCA §717. Subsection (b) continues the former time limit. A p roposal would reduce this limit to two months. However, testimony on tha t proposal was opposed as two months is not sufficient time to com plete a complex investigation. § 6208.1. Rejecting a Claim. When a government Claims Officer rejects a claim p ursuant to § 6208(a), the notice of rejection shall set for th the grounds therefore, including the findings of fact,

. § 6208.1. Rejecting a Claim. When a government Claims Officer rejects a claim p ursuant to § 6208(a), the notice of rejection shall set for th the grounds therefore, including the findings of fact, the lega l basis relied on for such denial, and any investigative reports revi ewed by the Claims Officer or initiated by that office during t he pendency of the investigative period SOURCE: Added by P.L. 25-130:4. § 6208.2. Outside Adjuster Authorized. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 13 For the purposes of this Chapter, the Attorney Gen eral is hereby authorized to contract with a licensed insur ance claims adjuster, or with various insurance claims adjuster s on a rotating basis to assist in assessing the value of claims fi led pursuant to this Chapter. SOURCE: Added by P.L. 25-130:5. § 6209. Procedure in Court. All actions brought under this Chapter shall be go verned by the law and rules of procedure of the Superior Cour t of Guam. Service of process shall be made upon the Claims Of ficer and upon the Attorney General. Trial shall be without a jury. SOURCE: GC § 6500.14 and § 6500.15. Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.18.

of process shall be made upon the Claims Of ficer and upon the Attorney General. Trial shall be without a jury. SOURCE: GC § 6500.14 and § 6500.15. Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.18. Codified as 5 GCA § 6209. COMMENT: Service of process is required to be made on both the Claims Officer and the Attorney General. Obviously, if the Attorney General is the Claims Officer for the agency involv ed, only one service need be made. However, where such is not the case, the Attorney General, having cognizance over all legal matters c oncerning the government of Guam, must be made aware of all suits against the government, or any of its parts, as soon as possibl e. Waiting upon delivery by the affected agency could lose, and has lost under prior law, valuable time and sometimes money. § 6210. Settlement of Suit. (a) Subject to the approval of the court in which the case is pending, the Attorney General is authorized to sett le a suit at any time before final judgment; provided , that if government funds are to be paid in excess of the balance in the Gove rnment Claims Fund, an appropriation for that purpose or authoriz ation to transfer resources of the government for that

, that if government funds are to be paid in excess of the balance in the Gove rnment Claims Fund, an appropriation for that purpose or authoriz ation to transfer resources of the government for that purpo se shall have been previously authorized by law. (b) In the case of autonomous agencies, the attorne y repre- senting such agency is authorized to settle a suit against the agency he represents subject to the approval of the governing board of the agency, or if no board exists, to the approval of the chief executive officer of said agency. (c) Settlement of any claims concerning the governm ent of Guam shall not be sealed and shall be open for public inspection. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 14 A copy of each settlement shall be sent to the Speaker of I Liheslaturan Guåhan . SOURCE: GC § 6500.17. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.19. Codified as 5 GCA § 6210. Subsection (a) a mended by P.L. 32- 076:3 (Nov. 27, 2013). Subsection (c) added by P.L . 32-076:3 (Nov. 27, 2013). COMMENT: This Section notes the difference between line and autonomous agencies and their legal representation.

P.L. 32- 076:3 (Nov. 27, 2013). Subsection (c) added by P.L . 32-076:3 (Nov. 27, 2013). COMMENT: This Section notes the difference between line and autonomous agencies and their legal representation. If a law should be passed making the Attorney General the legal repres entative of such agencies, this Section would still apply, as it rec ognizes the semi- independent character of these agencies. § 6211. Appeals. Judgments shall be subject to review on appeal in the same manner and to the same extent as other judgments of the Superior Court of Guam. SOURCE: GC § 6500.18. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.20. Codified as 5 GCA § 6211. § 6212. Limitation on Proceedings. (a) The filing of a suit under this Chapter agains t the government of Guam or against any specific entity t hereof shall suspend any proceedings against individual employee s alleged to be liable in the same action until such time as the suit against the government of Guam or against any specific entity t hereof has been brought to final judgment. (b) Settlement of a claim before suit, or final jud gment in a suit filed under this Chapter shall bar the claiman t from any further proceedings against the

ereof has been brought to final judgment. (b) Settlement of a claim before suit, or final jud gment in a suit filed under this Chapter shall bar the claiman t from any further proceedings against the employee or employe es whose acts or omissions gave rise to the claim unless: (1) the Court finds that the employee was acting outside the scope of his employment; or (2) the Court certifies that it would have awarded the claimant more but for the limitations of § 6301 of this Chapter. (c) Satisfaction of a settlement with or of a judgm ent against an employee of the government shall constitute a fo rfeiture by COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 15 the claimant of all rights against the government b y reason of the same subject matter. SOURCE: GC § 6500.20. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.21. Codified as 5 GCA § 6212. § 6213. Limitations on Awards in Actions. No action shall be instituted, nor judgment grante d, for a sum in excess of the amount of the claim presented to the Claims Officer, unless the increased amount of the claim i s shown to be based upon new evidence not reasonably discoverable at the time the claim was filed with

amount of the claim presented to the Claims Officer, unless the increased amount of the claim i s shown to be based upon new evidence not reasonably discoverable at the time the claim was filed with the Claims Officer. SOURCE: GC § 6500.12. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.22. Codified as 5 GCA § 6213. ---------- ARTICLE 3 LIABILITY AND INSURANCE § 6301. Maximum Limits of Governmental Liability. § 6302. Limitations on Contract Obligations. § 6303. Insurance Authorized. § 6304. Insurance for Government Employees. § 6301. Maximum Limits of Governmental Liability. (a) In all cases, neither line agencies nor autono mous agencies nor the government of Guam shall be liable for interest prior to the date of judgment, nor for any punitive damages, nor for attorney’s fees of the claimant; provided, that attorney’s fees may be awarded a successful claimant as part of a f inal court judgment if the court finds that suit was filed onl y because the government of Guam failed to act upon the claim bef ore the expiration of the time specified in § 6208(b) of th is Chapter and such failure resulted from failure to investigate t he claim.

ecause the government of Guam failed to act upon the claim bef ore the expiration of the time specified in § 6208(b) of th is Chapter and such failure resulted from failure to investigate t he claim. (b) The government of Guam, in the case of line age ncies, shall be liable in tort for not more than Two Hundr ed Thousand Dollars ($200,000) in an action for wrongful death, nor for more than Five Hundred Thousand Dollars ($500,000) in an y other tort action. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 16 (c) Each autonomous agency shall be liable for tort s committed by it for not more than the amounts state d in subsection (b), above. (d) (1) In the case of the Guam Memorial Hospital Authority, it shall also be liable in tort, not to exceed the limits stated in subsection (b), above, for damages arising from negligent acts of Government Health Profession als performed within facilities operated by said Author ity as agents of the government of Guam at the request of the Government or performed at the private medical faci lity of a private physician acting as a Government Health Professional for follow up care to a house patient limited to specific treatment

t of the Government or performed at the private medical faci lity of a private physician acting as a Government Health Professional for follow up care to a house patient limited to specific treatment for the condition(s) medically d iagnosed by the physician or the Emergency Room physician wh ile treating House Patients at the Guam Memorial Hospit al. Government Health Professionals shall be considered agents of the government of Guam within the meaning of §62 12 of this Chapter. (2) Government Health Professionals performing services in government facilities other than those operated by the Guam Memorial Hospital Authority shall be considered agents of the line department or autonom ous agency they serve. (3) A Government Health Professional is any person who is licensed or certified to practice a healing art in Guam and (A) is practicing that art within a government of Guam facility as an agent of the government of Guam ; or (B) performing follow up care to a House Patient within a private medical facility, which follow up care is limited to specific treatment for the condition( s) medically diagnosed by the physician or the Emergency Room physician while treating the House

n a private medical facility, which follow up care is limited to specific treatment for the condition( s) medically diagnosed by the physician or the Emergency Room physician while treating the House Patient at the Guam Memorial Hospital. (4) Government Health Professionals, including independent contractors serving as agents of the COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 17 government and government employees covered under t he provisions of the Government Claims Act, shall not be liable for more than the amount stated in Subsectio n (b). Any award against the government employer as herein provided bars further award from the Health Profess ional or the government employee in the same cause of action for injuries arising out of the same acts or omissions unless: (A) to the extent that any liability of the government of Guam or all other government agencies , (including, but not limited to, all instrumentaliti es, autonomous agencies, semiautonomous agencies, public corporations), is covered by a policy or pol icies of insurance, the government waives the limitation of liability found in Title 5 of the Guam Code Annotat ed, §6301; provided, that the

cies, public corporations), is covered by a policy or pol icies of insurance, the government waives the limitation of liability found in Title 5 of the Guam Code Annotat ed, §6301; provided, that the government shall not be liable in damages for tort in any amount which exce eds the coverage of insurance and the limitation of lia bility contained in 5 GCA §6213; or (B) the Court finds that the agent or the government employee was acting outside the scope of her/his employment. SOURCE: GC § 6500.13 as amended by P.L. 13-116 (Dec. 24, 1 975). Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.30. Codified as 5 GCA § 6301. Subsection (d)(4) added by P.L. 24-080:2. Subsection (d) amended by P.L. 29-076:3 (May 9, 2008). Subsection (b) amended by P.L. 35-111:2 (Dec. 1, 2020). 2013 NOTE: Pursuant to the authority granted by 1 GCA § 1606 , numbers and/or letters in subsections (d) (3) and ( 4) were altered to adhere to the Compiler’s alpha-numeric scheme. COMMENT: GC § 6500.13 became permanent law in the 14th Guam Legislature. It is continued here in its existing f orm modified to suit the format of this Chapter.

o the Compiler’s alpha-numeric scheme. COMMENT: GC § 6500.13 became permanent law in the 14th Guam Legislature. It is continued here in its existing f orm modified to suit the format of this Chapter. Since the Guam Memorial Hos pital is an autonomous agency, it must be treated differently t han the Department of Public Health and Social Services, which is a line agency. Also, Government Health Professionals may be acting as ag ents of the government through other line agencies. This Section also clears up a number of difficultie s that have arisen in suits over the years, but never resolved on appe al. Thus, it is clear that the government is liable, as a government, only for the obligations of line COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 18 agencies. The autonomous agencies are liable for th eir own torts. For contract obligations see § 6500.31. The rationale for providing the same limitations fo r all of the government is that, unlike private parties, the gov ernment has a continuing responsibility for the whole people of G uam. One or two suits cannot defeat the rationale for the government’s ex istence by so depleting the treasury that the

ties, the gov ernment has a continuing responsibility for the whole people of G uam. One or two suits cannot defeat the rationale for the government’s ex istence by so depleting the treasury that the government cannot function. A similar rationale applies to the Hospital, the Telephone and Power Au thorities, and any other such autonomous agencies as the Legislature m ay see fit to create. The tort limitations are raised to take into accoun t inflation, increased court awards and the needs of the victims of the torts. 1986 NOTE: The reference in this section as published in P.L. 17-029 to § 6500.5 is a typographical error. As enacted, § 65 00.05 has nothing to do with the time in which the government may invest igate a claim. That limit of six months is found in § 6500.17 of P.L. 1 7-029 and, accordingly, § 6208(b) of this Chapter. § 6302. Limitations on Contract Obligations. Each autonomous and line agency shall be liable fo r its own contract obligations. Payments pursuant to this Se ction shall be paid from the funds certified for payment of the co ntract pursuant to the budget of the agency or appropriati on against which the contract claim is made. SOURCE: Added by P.L.

his Se ction shall be paid from the funds certified for payment of the co ntract pursuant to the budget of the agency or appropriati on against which the contract claim is made. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.31 . Codified as 5 GCA § 6301. Amended by P.L. 27-142:3. COMMENT: At least one claimant has argued, unsuccessfully, that the government of Guam can be jointly liable with an au tonomous agency under the former chapter. Such was never the intent of the Legislature, but the former law was at least doubtful on the poi nt. See Aetna Life Ins. Co. v. Guam Memorial Hospital Authority and Governm ent of Guam, 1 Guam R. 592 (1979). § 6303. Insurance Authorized. (a) The government of Guam may use any funds autho rized for general operations to purchase liability insura nce to cover the liabilities incurred by it under this Chapter or un der any other law of Guam or of the United States. Such insurance may cover the government as a whole, or any part, department, line agency, or autonomous agency, as appropriate under the circ umstances. (b) The government of Guam may use any funds author ized for general operations to purchase property insuran ce to cover

t, line agency, or autonomous agency, as appropriate under the circ umstances. (b) The government of Guam may use any funds author ized for general operations to purchase property insuran ce to cover COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 19 the loss, for any reason and by any cause, incurred by the government, or by any appropriate line agency or au tonomous agency, of any property owned by the government. An y monies recovered pursuant to this subsection shall be used for the repair or replacement of the facilities insured, and if th e facilities are not to be repaired or replaced, then the funds shal l be deposited in the General Fund. Such insurance coverage may co ver the general government or any appropriate portion, agen cy, autonomous agency or specific facility thereof. (c) The authority given by this Section shall be in addition to any authority for the purchase of insurance give n by any other law of Guam. (d) No insurance company writing insurance pursuant to this Section shall have a defense of sovereign immu nity if sued directly by a claimant unless the government, itsel f, would have such a defense. SOURCE: Added by P.L. 17-029:1 (Nov.

nce pursuant to this Section shall have a defense of sovereign immu nity if sued directly by a claimant unless the government, itsel f, would have such a defense. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.32 . Codified as 5 GCA § 6303. COMMENT: Under an old Attorney General’s Opinion (pre-1970) , the government cannot purchase any insurance unless spe cifically authorized by law. This Section provides that authorization, b oth for liability and for property insurance. The lack of this section caused much argument and delay, and even potential loss of funds, after Typh oon Pamela when one requirement of the federal relief funds for constru ction was that the finished construction be adequately covered by insu rance against typhoon damage. Guam is 'self-insured', but only barely so and not really self- insured as there is no fund created nor means of re placing damaged property other than by general appropriation. This section provides a means by which claims of the government can be paid promptly . § 6304. Insurance for Government Employees. The government of Guam and each of the autonomous agencies is authorized to purchase insurance, if ad visable and available, to

ment can be paid promptly . § 6304. Insurance for Government Employees. The government of Guam and each of the autonomous agencies is authorized to purchase insurance, if ad visable and available, to cover the liability of government emp loyees which they may incur pursuant to § 6212 of this Chapter, unless such liability is incurred for acts or omissions which o ccurred outside the scope of the employees’ employment. The authori ty granted by this Section shall be in addition to any other g rant of authority contained in any law of Guam or of the United State s. Each agency, department, or entity purchasing such insur ance shall COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 20 have the discretion to determine what dollar limita tions are reasonable considering the positions to be covered and the risks involved. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.33 . Codified as 5 GCA § 6304. COMMENT: Ever since the adoption of the first Government Cl aims Act, government employees have been liable for any amount of tort damages in excess of the limitations placed on judg ments against the government of Guam.

he adoption of the first Government Cl aims Act, government employees have been liable for any amount of tort damages in excess of the limitations placed on judg ments against the government of Guam. Until recently, this problem ha s been negligible. However, with damage awards and grounds for suit in creasing, the employees have become increasingly vulnerable. The Legislature has recognized this with respect to false arrest insura nce for police. The Guam Federation of Teachers has recognized this wit h respect to its membership. This section recognizes the fact with r espect to all government employees. Note that the coverage is only for liability incurr ed by this Chapter. If an employee becomes liable for something that is done outside the scope of his employment, then this Chapter provides no protection nor does it govern the liability incurred. ---------- ARTICLE 4 PAYMENTS § 6401. Claims Fund Created. § 6402. Payments for Line Agency Obligations. § 6403. Autonomous Agency Operating Funds Available . § 6404. Budgeting for Claims. § 6401. Claims Fund Created. (a) Creation. The Government Claims Fund is hereby created and established as an account which shall b e separately

rating Funds Available . § 6404. Budgeting for Claims. § 6401. Claims Fund Created. (a) Creation. The Government Claims Fund is hereby created and established as an account which shall b e separately identified and maintained by the Department of Admi nistration. It shall consist of such funds as have been appropr iated by I Liheslatura, for the purpose of paying tort claims pursuant to this Chapter and unspent on the effective date of this C hapter, and such appropriations made for this purpose thereafte r. (b) Upon the settlement of any claim by the Attorne y General, or final judgment in any action under this Chapter, the Attorney General shall designate which line agency incurred the COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 21 liability, which requires payment, and whether the liability arose under tort or contract. A report of settlements or judgments in any action under this Chapter shall be made to the Speaker of I Liheslaturan Guåhan every thirty (30) days. (c) Records of the Department of Administration. Th e Department of Administration shall keep records of amounts paid out of the Government Claims Fund under the pr ovisions of this Chapter on

days. (c) Records of the Department of Administration. Th e Department of Administration shall keep records of amounts paid out of the Government Claims Fund under the pr ovisions of this Chapter on behalf of each line agency. This re cord shall be based on the designations as to agency and legal ba sis, the latter being made pursuant to subsection (b) of this Secti on. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.40 . Codified as 5 GCA § 6401. Subsection (a) amended by P.L. 27-142:4. Subsection (b) amended by P.L. 32-076:4 (Nov. 27, 2 013). § 6402. Payments for Line Agency Obligations. (a) The Director of Administration shall pay from the Government Claims Fund for tort claims made against any line agency of the government, or the government of Guam in general, in order of the date of approved settlemen t or final judgment. In the event funds are insufficient to f ully pay a claim, the claim shall be paid pro rata until the t otal claim is paid in full. All tort payments under this Chapter not made on account of the liability of autonomous agencies sha ll be made out of the Government Claims Fund only.

ro rata until the t otal claim is paid in full. All tort payments under this Chapter not made on account of the liability of autonomous agencies sha ll be made out of the Government Claims Fund only. (b) Payments pursuant to Subsection (a) of Section 6105 of Article 1 of Chapter 6 of Division 1 of Title 5, Guam Code Annotated, shall be paid from the funds certified f or payment of the contract pursuant to the budget of the agency o r appropriation against which the contract claim is m ade. (c) Payments pursuant to Subsection (b) of Section 6105 of Article 1 of Chapter 6 of Division 1 of Title 5, Guam Code Annotated, shall be paid from the Government Claims Fund. (d) Compensation for back wages shall come from th e employee =s agency =s personnel budget and not from the Government Claims Fund. SOURCE: GC § 6500.19. Added by P.L. 17-029:1 (Nov. 9, 1983 ) as § 6500.41. Codified as 5 GCA § 6402. Amended by P.L. 27-142:5. COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 22 § 6403. Autonomous Agency Operating Funds Available . Each autonomous agency shall pay the amount claime d under this Chapter in order of the date of approved settlement or final judgment from its

22 § 6403. Autonomous Agency Operating Funds Available . Each autonomous agency shall pay the amount claime d under this Chapter in order of the date of approved settlement or final judgment from its own operating funds not spe cifically restricted by any other Guam or United States law o r from applicable insurance proceeds. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as GC § 6500 .42. Codified as 5 GCA § 6403. Amended by P.L. 27-142:7. § 6404. Budgeting for Claims. (a) The annual budget recommendations for governme ntal operations transmitted from the Governor to the Leg islature, or the annual budget of each autonomous agency, shall include an amount for each agency, line or autonomous, as the case may be, for payment of claims made pursuant to this Chapter and generated by the activities of such agency. The amo unt shall be at least equal to the arithmetic average of amounts paid out of the Government Claims Fund, or operating fund, as the c ase may be, on behalf of such line or autonomous agency, as det ermined and recorded by the Department of Administration, or by the autonomous agency, for the three fiscal years immed iately preceding the year in which the recommendation

autonomous agency, as det ermined and recorded by the Department of Administration, or by the autonomous agency, for the three fiscal years immed iately preceding the year in which the recommendation is b eing made. The amounts requested may be decreased by the amoun t of insurance coverage purchased and in force. (b) The first such budget request shall be made for the fiscal year following passage of this Chapter. [FY 1985] (c) Between the passage of this Chapter [Dec. 8, 19 83] and Fiscal Year 1985, the budget recommendation require d by this Section shall be based upon the amounts paid in cla im settlements or judgments on behalf of each line age ncy during the preceding fiscal year. (d) Certificates Authorized for COLA Settlement. (1) The Government of Guam shall finally and permanently implement the settlement agreement ente red into between the Government of Guam and the COLA Cl ass as ordered by the Judgment in Rios v. Camacho, Superior Court Case No. SP0206-93. I Liheslatura acknowledges, adopts, and affirms the government’s obligation to COL6/24/20215 GCA GOVERNMENT OPERATIONS CH.

dered by the Judgment in Rios v. Camacho, Superior Court Case No. SP0206-93. I Liheslatura acknowledges, adopts, and affirms the government’s obligation to COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 23 immediately pay all monies due and ordered by said Judgment and the Stipulation and Order of November 21, 2006. (2) To expedite payment to COLA claimants in Rios v. Camacho , and in addition to any other available remedies, the Director of Administration shall issue to each COLA Awardee, within thirty (30) calendar days after ena ctment hereof, a serial Certificate of Claim stating the a mount due the awardee, excluding attorney’s fees and costs, b ut including such terms as would affect the redeemable value of the Certificate, such as the rate of interest on undisputed unpaid government claims of seven percent (7%) per annum calculated from date of settlement, that the Certif icate is renewable, and confirmation that the entire amount paid upon redemption shall be exempt from any and all Gu am taxes. Plaintiffs’ Attorneys in the Rios case may request and receive a Certificate for no more than fifty pe rcent (50%) of the amount owed them pursuant to the

hall be exempt from any and all Gu am taxes. Plaintiffs’ Attorneys in the Rios case may request and receive a Certificate for no more than fifty pe rcent (50%) of the amount owed them pursuant to the Judgm ent. The Director of Administration shall inscribe on th e Certificates only those names of awardees and corresponding amounts provided by the Guam Retireme nt Fund, minus attorney’s fees and costs, and shall cr eate and retain a list of Certificates issued. The Director of Administration may request that the Guam Retirement Fund assist in the disbursement of Certificates to claim ants, their successors and assignees. (3) Any person who willfully fails to perform a ministerial duty to prepare or issue Certificates o f Claim in a timely manner as directed herein, shall be person ally liable for the reasonable attorney’s fees and costs incurred by claimants to legally compel performance. (4) Said Certificates are evidence of amounts paya ble by the government of Guam, and are valid until rede emed or replaced by a Certificate issued to a registered successor as subsequently provided in this Section. Certific ates may be sold, transferred or assigned to a third party.

are valid until rede emed or replaced by a Certificate issued to a registered successor as subsequently provided in this Section. Certific ates may be sold, transferred or assigned to a third party. Any transferee or of a claimant shall have the same rig hts as said claimant when the government disburses payments pur suant COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 24 to the judgment in Superior Court Case No. SP0206-9 3. The holder must surrender the Certificate to receiv e payment of the award it represents. If a Certifica te is not redeemed by the end of a fiscal year, it shall be r eissued to the owner upon demand. Upon the sale, assignment or transfer of a Certificate of Claim, the purchaser, assignee or transferee may register said sale, assignment or tr ansfer with the Department of Administration. The first p erson to register a sale, assignment or transfer shall have a superior right against all subsequently registered claims to the Certificate and shall be substituted by the Superio r Court in place of the claimant in Rios v. Camacho, Superior Court Case No. SP0206-93.

ior right against all subsequently registered claims to the Certificate and shall be substituted by the Superio r Court in place of the claimant in Rios v. Camacho, Superior Court Case No. SP0206-93. (5) Nothing in this Subsection restricts or elimi nates any legal remedies available to COLA claimants as o bligees of the Rios Judgment, including the remedies provided by Title 5 GCA § 22415. (e) Sale of Certificates of Claim in whole or part as General Obligation Promissory Notes. (1) Authorization to Borrow. I Maga’låhen Guåhan is authorized to issue General Obligation Promissor y Notes (the 'Notes') not to exceed the total amount of all outstanding and unredeemed Certificates of Claim is sued to 'COLA' Awardees in reference to Superior Court Case No. SP0206-93 and as authorized in Title 5 GCA § 6404(d ). The Notes shall be general obligations of the gover nment of Guam secured by the full faith and credit of the go vernment of Guam. I Maga’låhen Guåhan shall within sixty (60) days after the enactment of this Act issue a Reques t for Proposal for the sale of the general obligation pro missory notes authorized herein. (2) Terms and Conditions.

Guåhan shall within sixty (60) days after the enactment of this Act issue a Reques t for Proposal for the sale of the general obligation pro missory notes authorized herein. (2) Terms and Conditions. The terms and conditions of the Notes shall be as determined by I Maga’låhen Guåhan ; provided that the notes: (A) shall not be secured by a pledge of Section 30 revenues; (B) shall be redeemed in full, including accrued COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 25 interest within twenty (20) years or thereafter automatically convert to Certificates of Claim subj ect to the terms and conditions defined in 5 GCA § 6404(d); (C) shall bear interest at such fixed or variable rate or rates as may be negotiated by I Maga’låhen Guåhan in the best interests of the government, such interest rate shall not exceed eight percent (8%) a nd shall be computed on a three-hundred sixty-five (36 5) day calendar year upon the actual amount issued by the government of Guam. (3) Sale of Promissory Notes. (A) Sale of the Notes shall be in denominations no less than Five Thousand Dollars ($5,000.00); (B) Investor purchase quantity shall not be limited; (C) Investor access to

) Sale of Promissory Notes. (A) Sale of the Notes shall be in denominations no less than Five Thousand Dollars ($5,000.00); (B) Investor purchase quantity shall not be limited; (C) Investor access to purchase of the Notes shall be in the following order of priority: (i) the Government of Guam Retirement Fund; (ii) residents of Guam; (iii) banks or other financial institutions licensed to conduct business on Guam; (iv) other entities licensed to conduct business on Guam; (v) all other interested institutions as determined by I Maga’låhen Guåhan . (4) Use of Proceeds From the Sale of the Notes. Th e proceeds from the sale of the Notes shall only be u sed and are hereby appropriated to redeem and pay outstandi ng Certificates of Claims issued to COLA awardees in S uperior Court Case No. SP0206-93. (5) Approval by the Guam Economic Development Authority. Notes authorized in this section shall not be sold COL6/24/20215 GCA GOVERNMENT OPERATIONS CH. 6 GOVERNMENT CLAIMS ACT 26 until the Board of Directors of the Guam Economic Development Authority approves the terms and condit ions of the Note sale. (6) Approval of Voters Not Required.

ATIONS CH. 6 GOVERNMENT CLAIMS ACT 26 until the Board of Directors of the Guam Economic Development Authority approves the terms and condit ions of the Note sale. (6) Approval of Voters Not Required. The Notes shall not be subject to the approval of voters of G uam. (7) Continuing Annual Appropriation of Principal and Interest. Effective October 1, 2011 and each October 1 thereafter, there is hereby appropriated sums from the General Fund required for all payments of principal and interest based on a maturity schedule to repay any general obligation promissory notes authorized in § 6404(e) (1). This annual appropriation shall be a continuing appropriation and shall not lapse at the end of the fiscal year. In addition to any funds specifically approp riated by this Act, all moneys received from any other source as contributions or supplements for repayment of the n otes established in this Act, and any interest or income earned, shall be paid into a Fund established for repayment and shall be a continuing appropriation. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as GC § 6500 .43.. Codified as 5 GCA § 6404. Subsection (d) added by P .L. 29-018:2 (Sept. 24, 2007).

repayment and shall be a continuing appropriation. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as GC § 6500 .43.. Codified as 5 GCA § 6404. Subsection (d) added by P .L. 29-018:2 (Sept. 24, 2007). Subsection (e) added by P.L. 30-239:4 (J an. 20, 2011). ---------- COL6/24/2021