Ch. 758                         MARVIN MANDEL, Governor                               1589

IN AN ACTION OR PROCEEDING AGAINST AN OFFICER OR
EMPLOYEE, IF A JUDGMENT IS RENDERED IN FAVOR OF THE
OFFICER OR EMPLOYEE, [[OR]] AND IF THE COURT FINDS THAT
THE ACTION OR PROCEEDING WAS INSTITUTED IN (1) BAD FAITH
OR (2) WITHOUT SUBSTANTIAL JUSTIFICATION, THE COURT SHALL
REQUIRE THE MOVING PARTY TO PAY THE STATE OR THE
OFFICER OR EMPLOYEE, AS THE CASE MAY BE, THE AMOUNT OF
THE COST THEREOF AND THE REASONABLE EXPENSES INCURRED,
INCLUDING REASONABLE ATTORNEYS' FEES. THE COURT SHALL
REQUIRE THE MOVING PARTY TO PAY THE COST AND EXPENSES
DIRECTLY TO THE STATE OR TO ITS APPROPRIATE AGENCY,
BOARD, COMMISSION, OR DEPARTMENT THEREOF, IF PRIOR
PAYMENT OF COSTS AND EXPENSES TO THE OFFICER OR
EMPLOYEE HAS BEEN MADE PURSUANT TO THE PROVISIONS OF
§12C OF THIS ARTICLE.

12H. NO WAIVER OF SOVEREIGN IMMUNITY.

(A) THE CONSENT OF THE ATTORNEY GENERAL TO DEFEND
ACTIONS OR PROCEEDINGS AGAINST STATE OFFICERS AND
EMPLOYEES MAY NOT BE CONSTRUED TO DEPRIVE ANY AGENCY,
BOARD, COMMISSION, DEPARTMENT, OFFICER, OR INSTITUTION,
OR ANY EMPLOYEE THEREOF, OF ITS SOVEREIGN IMMUNITY AS IT
EXISTED PRIOR TO JULY 1, 1973. (B) THE PROVISIONS OF THIS ACT
SHALL APPLY TO ALL ACTIONS INSTITUTED IN COURT ON OR
AFTER JULY 1, 1973.

SECTION 2. AND BE IT FURTHER ENACTED, That new Section 16C be
and it is hereby added to Article 78A of the Annotated Code of Maryland (1969
Replacement Volume and 1972 Supplement), title "Public Works," to follow
immediately after existing Section 16B thereof, to read as follows:

16C. PAYMENT OF JUDGMENT AGAINST STATE OFFICER OR
EMPLOYEE.

(A)   THE BOARD OF PUBLIC WORKS MAY GRANT FROM THE
GENERAL EMERGENCY FUND OR FROM FUNDS PROVIDED
THEREFOR BY THE GOVERNOR IN THE BUDGET BILL, A SUM TO
SATISFY ALL OR PART OF ANY SETTLEMENT OR ANY JUDGMENT
RENDERED BY A COURT OF COMPETENT JURISDICTION AGAINST
A STATE OFFICER OR EMPLOYEE SUCH A GRANT MAY ONLY BE
MADE UPON WRITTEN APPLICATION TO THE BOARD SPECIFYING
THE APPLICANTS REASONS FOR BELIEVING THE JUDGMENT TO BE
A STATE RESPONSIBILITY, UPON A HEARING BEFORE THE BOARD
OR A HEARING OFFICER APPOINTED BY IT, AND AFTER A
WRITTEN REPORT HAS BEEN FILED BY THE BOARD ASSIGNING ITS
REASONS FOR THE GRANT OR DENIAL.

(B)   THE BOARD MAY PAY THE GRANT IN LUMP SUM OR IN
INSTALLMENTS AS IT DEEMS APPROPRIATE.

(C) THE PAYMENT OF THE GRANT BY THE BOARD SHALL NOT BE
CONSTRUED TO ABROGATE THE SOVEREIGN IMMUNITY OF THE
STATE OR DEPRIVE ANY AGENCY, BOARD, COMMISSION,
DEPARTMENT, OFFICER, OR INSTITUTION, OR ANY EMPLOYEE
THEREOF, OF ITS SOVEREIGN IMMUNITY AS IT EXISTED PRIOR TO
JULY 1, 1973. NO APPEAL SHALL LIE TO ANY COURT FROM A
DECISION OF THE BOARD OF PUBLIC WORKS MADE PURSUANT TO