House Amendment 8374 PAG LIN 1 1 Amend Senate File 2337, as passed by the Senate, as 1 2 follows: 1 3 #1. Page 1, by striking lines 2 through 5 and 1 4 inserting the following: 1 5 <The association of Iowa fairs, or a fair, shall 1 6 have the power to join a local government risk pool as 1 7 provided in section 670.7. 1 8 Sec. . Section 670.7, Code 2007, is amended to 1 9 read as follows: 1 10 670.7 INSURANCE. 1 11 1. The governing body of a municipality may 1 12 purchase a policy of liability insurance insuring 1 13 against all or any part of liability which might be 1 14 incurred by the municipality or its officers, 1 15 employees, and agents under section 670.2 and section 1 16 670.8 and may similarly purchase insurance covering 1 17 torts specified in section 670.4. The governing body 1 18 of a municipality may adopt a self=insurance program, 1 19 including but not limited to the investigation and 1 20 defense of claims, the establishment of a reserve fund 1 21 for claims, the payment of claims, and the 1 22 administration and management of the self=insurance 1 23 program, to cover all or any part of the liability. 1 24 The governing body of a municipality may join and pay 1 25 funds into a local government risk pool to protect 1 26 itself against any or all liability. The governing 1 27 body of a municipality may enter into insurance 1 28 agreements obligating the municipality to make 1 29 payments beyond its current budget year to provide or 1 30 procure the policies of insurance, self=insurance 1 31 program, or local government risk pool. The premium 1 32 costs of the insurance, the costs of a self=insurance 1 33 program, the costs of a local government risk pool, 1 34 and the amounts payable under the insurance agreements 1 35 may be paid out of the general fund or any available 1 36 funds or may be levied in excess of any tax limitation 1 37 imposed by statute. However, for school districts, 1 38 the costs shall be included in the district management 1 39 levy as provided in section 296.7 if the district has 1 40 certified a district management levy. If the district 1 41 has not certified a district management levy, the cost 1 42 shall be paid from the general fund. Any independent 1 43 or autonomous board or commission in the municipality 1 44 having authority to disburse funds for a particular 1 45 municipal function without approval of the governing 1 46 body may similarly enter into insurance agreements, 1 47 procure liability insurance, adopt a self=insurance 1 48 program, or join a local government risk pool within 1 49 the field of its operation. 1 50 2. The procurement of this insurance constitutes a 2 1 waiver of the defense of governmental immunity as to 2 2 those exceptions listed in section 670.4 to the extent 2 3 stated in the policy but shall have no further effect 2 4 on the liability of the municipality beyond the scope 2 5 of this chapter, but if a municipality adopts a 2 6 self=insurance program or joins and pays funds into a 2 7 local government risk pool the action does not 2 8 constitute a waiver of the defense of governmental 2 9 immunity as to the exceptions listed in section 670.4. 2 10 3. The existence of any insurance which covers in 2 11 whole or in part any judgment or award which may be 2 12 rendered in favor of the plaintiff, or lack of any 2 13 such insurance, shall not be material in the trial of 2 14 any action brought against the governing body of a 2 15 municipality, or its officers, employees, or agents 2 16 and any reference to such insurance, or lack of 2 17 insurance, is grounds for a mistrial. A 2 18 self=insurance program or local government risk pool 2 19 is not insurance and is not subject to regulation 2 20 under chapters 505 through 523C. 2 21 4. The association of county fairs as defined in 2 22 section 174.1, or a fair, shall be deemed to be a 2 23 municipality as defined in this chapter only for the 2 24 purpose of joining a local government risk pool as 2 25 provided in this section.> 2 26 #2. By renumbering as necessary. 2 27 2 28 2 29 2 30 COMMITTEE ON AGRICULTURE 2 31 MERTZ of Kossuth, CHAIRPERSON 2 32 SF 2337.502 82 2 33 av/rj/7398 -1-