H.B. 262

VETOES

(III)   FINES; AND

(IV)    OTHER EXPENSES THAT WERE ACTUALLY AND REASONABLY
INCURRED BY THE INDIVIDUAL IN CONNECTION WITH THE ACTION OR PROCEEDING.

(2)      WITH RESPECT TO A CIVIL, ADMINISTRATIVE, OR INVESTIGATIVE
ACTION OR PROCEEDING, THE STATE SHALL INDEMNIFY A COVERED INDIVIDUAL
FOR THE EXPENSES OF THE ACTION OR PROCEEDING IF THE COVERED INDIVIDUAL
ACTED:

(I)      IN GOOD FAITH; AND

(II)     IN A MANNER THE COVERED INDIVIDUAL REASONABLY
BELIEVED TO BE IN OR NOT OPPOSED TO THE BEST INTEREST OF THE
SUPPLEMENTAL RETIREMENT PLANS.

(3)      WITH RESPECT TO A CRIMINAL ACTION OR PROCEEDING, THE STATE
SHALL INDEMNIFY A COVERED INDIVIDUAL FOR THE EXPENSES OF THE ACTION OR
PROCEEDING IF THE COVERED INDIVIDUAL:

(I)      ACTED IN GOOD FAITH;

(II)     ACTED IN A MANNER THE COVERED INDIVIDUAL REASONABLY
BELIEVED TO BE IN OR NOT OPPOSED TO THE BEST INTEREST OF THE
SUPPLEMENTAL RETIREMENT PLANS; AND

(III)   DID NOT HAVE REASONABLE CAUSE TO BELIEVE THAT THE
COVERED INDIVIDUAL'S CONDUCT WAS UNLAWFUL.

(C)     ANY TERMINATION OF AN ACTION OR PROCEEDING DOES NOT, OF ITSELF,
CREATE A PRESUMPTION THAT THE COVERED INDIVIDUAL DID NOT MEET THE
STANDARDS FOR INDEMNIFICATION DESCRIBED IN SUBSECTION (B) (2) AND (3) OF
THIS SECTION.

(D)     THE STATE MAY NOT INDEMNIFY:

(1)      A COVERED INDIVIDUAL WITH RESPECT TO AN ACTION OR
PROCEEDING AS TO WHICH THE COVERED INDIVIDUAL WAS HELD LIABLE FOR
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT IN THE PERFORMANCE OF THE
COVERED INDIVIDUAL'S DUTY TO THE SUPPLEMENTAL RETIREMENT PLANS; OR

(2)      AN INDEPENDENT CONTRACTOR FURNISHING SERVICES TO THE
SUPPLEMENTAL RETIREMENT PLANS.

(E)     (1) THE STATE SHALL PROVIDE INSURANCE FOR A COVERED
INDIVIDUAL ELIGIBLE FOR INDEMNIFICATION UNDER THIS SECTION.

(2)      FOR THE PURPOSE OF PARAGRAPH (1) OF THIS SUBSECTION, THE
STATE MAY PROVIDE SELF-INSURANCE UNDER TERMS AND CONDITIONS
SATISFACTORY TO THE STATE TREASURER

(3)      A COVERED INDIVIDUAL MAY NOT BE REQUIRED TO PAY AMOUNTS
ATTRIBUTABLE TO LIABILITY DESCRIBED IN THIS SECTION BECAUSE THE STATE

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