Marvin Mandel, Governor                       1455

CHAPTER 507
(House Bill 374)

AN ACT to repeal and re-enact, with amendments, Section 56B of
Article 77 of the Annotated Code of Maryland (1971 Supplement),
title "Public Education," subtitle "Chapter 4. County Boards of
Education," to require the county boards of education and the
Board of School Commissioners of Baltimore City to purchase
comprehensive liability insurance, to authorize the State Board of
Education to set standards and guidelines for the policies, includ-
ing a minimum liability coverage which shall not be less than one
hundred thousand dollars ($100,000.00) per occurrence, and to
allow the Boards of Education to raise the defense of sovereign
immunity to any amount in excess of the limit of the policy OR
IN EXCESS OF A CERTAIN AMOUNT IN THE CASE OF
SELF-INSURANCE.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 56B of Article 77 of the Annotated Code of Maryland
(1971 Supplement), title "Public Education," subtitle "Chapter 4.
County Boards of Education," be and it is hereby repealed and re-
enacted, with amendments, to read as follows:

56B.

(a)    The county boards of education and the [board] Board of
[school commissioners] School Commissioners of Baltimore City
shall carry comprehensive liability insurance to protect the Board and
its agents and employees. The purchase of [such] the insurance shall
be considered as an educational purpose and as a valid educational
expense.

(b)    The State Board of Education shall adopt regulations setting
up standards and guidelines for the policies, including a minimum
liability coverage [,] which shall not be less than one hundred thou-
sand dollars ($100,000.00) per occurrence, and the policies purchased
under this section [,] after the adoptions of these regulations, shall
conform to them.

(c)    Any of the above boards of education shall be considered in
compliance herein if they are self-insured in an amount not less than
one hundred thousand dollars ($100,000.00) per occurrence under
rules and regulations promulgated by the State Insurance Commis-
sioner. [Liability shall be limited to one hundred thousand dollars
($100,000) for each injury, the policy limits for this insurance shall
not exceed one hundred thousand dollars ($100,000).]

(d)    Nothing in this section shall be construed as affecting the
right of the various boards of education, on their own behalf, from
raising the defense of sovereign immunity to any amount in excess of
the limit of [liability] the policy OR IN EXCESS OF ONE HUN-
DRED THOUSAND DOLLARS ($100,000) IN THE CASE OF
SELF-INSURANCE.

Sec. 2. And be it further enacted, That this Act is hereby declared
to be an emergency measure and necessary for the immediate preser-
vation of the public health and safety and having been passed by a