MARVIN MANDEL, Governor
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ACTED IN GOOD FAITH AND IN A MANNER HE REASONABLY
BELIEVED TO BE IN OR NOT OPPOSED TO THE BEST INTEREST OF
THE TEACHERS' RETIREMENT SYSTEM, AND, WITH RESPECT TO A
CRIMINAL ACTION, HAD NO REASONABLE CAUSE TO BELIEVE HIS
CONDUCT WAS UNLAWFUL, THEN INDEMNIFICATION SHALL BE
AGAINST THOSE EXPENSES, INCLUDING REASONABLE ATTORNEY'S
FEES, JUDGMENTS, FINES, AND ACCOUNTS PAID IN SETTLEMENT
WHICH WERE ACTUALLY AND REASONABLY INCURRED BY HIM IN
CONNECTION WITH THE PROCEEDING.
(D) THE TERMINATION OF ANY SUIT OR PROCEEDING, IN
ANY MANNER, DOES NOT, OF ITSELF, CREATE A PRESUMPTION
THAT THE PERSON DID NOT ACT IN GOOD FAITH AND IN A MANNER
HE REASONABLY BELIEVED TO BE IN OR NOT OPPOSED TO THE
BEST INTEREST OF THE TEACHERS' RETIREMENT SYSTEM, AND
WITH RESPECT TO A CRIMINAL ACTION OR PROCEEDING, HAD
REASONABLE CAUSE TO BELIEVE THAT HIS CONDUCT WAS
UNLAWFUL.
(E) INDEMNIFICATION MAY NOT BE MADE WITH RESPECT
TO ANY SUIT, CLAIM, OR MATTER AS TO WHICH THE PERSON WAS
ADJUDGED TO BE LIABLE FOR NEGLIGENCE OR MISCONDUCT IN THE
PERFORMANCE OF HIS DUTY TO THE TEACHERS' RETIREMENT
SYSTEM. THE COURT IN WHICH THE ACTION WAS BROUGHT MAY
DETERMINE, UPON APPLICATION, THAT, DESPITE THE
ADJUDICATION OF LIABILITY, THE PERSON IS FAIRLY AND
REASONABLY ENTITLED TO INDEMNITY FOR THE EXPENSES WHICH
THE COURT SHALL DEEM PROPER.
(F) THE STATE SHALL PROVIDE INSURANCE FOR EVERY
PERSON WHO IS SERVING IN A FIDUCIARY CAPACITY TO THE
TEACHERS' RETIREMENT SYSTEM AGAINST ANY LIABILITY
ASSERTED AGAINST HIM OR INCURRED BY HIM ARISING OUT OF
HIS STATUS AS A FIDUCIARY.
SECTION 3. AND BE IT FURTHER ENACTED, That new
Section 54A be and it is hereby added to Article 88B —
State Police, of the Annotated Code of Maryland (1969
Replacement Volume and 1974 Supplement) to read as
follows:
Article 88B — State Police
54A.
(A) THE STATE SHALL INDEMNIFY EVERY PERSON WHO IS
MADE, OR IS THREATENED TO BE MADE, A PARTY TO ANY ACTION,
SUIT, OR PROCEEDING, INCLUDING ADMINISTRATIVE AND
INVESTIGATIVE PROCEEDINGS BY REASON OF HIS SERVICE IN A
FIDUCIARY CAPACITY TO THE STATE POLICE RETIREMENT SYSTEM,
IN ACCORDANCE WITH AND SUBJECT TO THE CONDITIONS STATED
IN THIS SECTION.
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