(1) The provisions of KRS 453.260 shall apply only to civil actions initiated after July 15, 1982, except in the case of a court proceeding to review an administrative review board decision, in which case the provisions of KRS 453.260 shall apply only when the administrative review process was initiated after July 15, 1982.
(2) Nothing in KRS 453.260 shall prohibit the Commonwealth from negotiating or attempting to negotiate a settlement of claims arising under KRS 453.260 or from paying such settlements and their associated costs.