a judgment resulting from certain tortious acts or omissions under the Local
Government Tort Claims Act.

BY repealing and reenacting, with amendments,
Article - Courts and Judicial Proceedings
Section 5-303

Annotated Code of Maryland
(1998 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Courts and Judicial Proceedings

5-303.

(a) (1) [The]SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE
liability of a local government may not exceed $200,000 per an individual claim, and
$500,000 per total claims that arise from the same occurrence for damages resulting
from tortious acts or omissions, including liability arising under subsection (b) of this
section and indemnification under subsection (c) of this section.

(2) THE LIMITS ON LIABILITY PROVIDED UNDER PARAGRAPH (1) OF THIS
SUBSECTION DO NOT INCLUDE INTEREST ACCRUED ON A JUDGMENT.

(b) (1) Except as provided in subsection (c) of this section, a local
government shall be liable for any judgment against its employee for damages
resulting from tortious acts or omissions committed by the employee within the scope
of employment with the local government.

(2) A local government may not assert governmental or sovereign
immunity to avoid the duty to defend or indemnify an employee established in this
subsection.

(c) (1) A local government may not be liable for punitive damages.

(2) (i) Subject to subsection (a) of this section and except as provided
in subparagraph (ii) of this paragraph, a local government may indemnify an
employee for a judgment for punitive damages entered against the employee.

(ii) A local government may not indemnify a law enforcement
officer for a judgment for punitive damages if the law enforcement officer has been
found guilty under Article 27, § 731 of the Code as a result of the act or omission
giving rise to the judgment.

(3) A local government may not enter into an agreement that requires
indemnification for an act or omission of an employee that may result in liability for
punitive damages.

(d) Notwithstanding the provisions of subsection (b) of this section, this
subtitle does not waive any common law or statutory defense or immunity in
existence as of June 30, 1987, and possessed by an employee of a local government.