HARRY HUGHES, Governor

3263

CHAPTER 884

(House Bill 1132)

AN ACT concerning

State and Local Governmental Volunteer Units - Advisory
Board on Liability

FOR the purpose of creating an Advisory Board on Liability
to study the liability of certain governmental and

quasi governmental units and civic organizations;

describing the composition and organization of the
Board; describing the Board's duties; and providing
that the Board's existence terminates at a certain date
unless extended establishing an Advisory Board to
review, evaluate, and examine certain aspects of the
legal liability of certain governmental and
quasi-governmental units and organizations; providing
the Board shall make certain reports; prescribing the
Board's duties and responsibilities; and providing for
the termination of the Board.

BY adding to

Article 41 - Governor - Executive and Administrative

Departments
Section 511 through 517 516, inclusive, to be under the

new subheading "Advisory Board on Liability"
Annotated Code of Maryland
(1978 Replacement Volume and 1979 Supplement)

Preamble

The potential liability of directors of special tax
districts, officials of other units of State and local
governments, and officers of civic organizations that act as
governing bodies of special taxing districts has presented
certain problems. Individual and organization liability is
an area of the law that is vague, particularly in regard to
entities which exercise local authority through certain
governments, without being a part of those governments, for
example, a taxing district.

For many governmental or quasi-governmental units,
increased litigation has resulted in difficulty in obtaining
insurance. Several county governments have established
self-insurance funds to defend officials in lawsuits arising
out of the performance of their official duties. Because of
the expense, it is often impossible for smaller governmental
entities to acquire this protection. There are strong
indications that certain members of special taxing districts
and some officials of certain State and local governments