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Senate File 455 - IntroducedA Bill ForAn Act 1relating to restitution for claims arising from state
2employees committing unfair or discriminatory employment
3practices, including personal liability insurance
4requirements.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 7E.9 Personal liability insurance
2requirements.
3Each head of a department and each director or administrator
4of an independent agency shall, as a condition of their
5appointment or selection for that position, obtain personal
6liability insurance, in such amount as determined by the office
7of the attorney general, to insure against any claim that
8the person committed an unfair or discriminatory employment
9practice in violation of state or federal law.
10 Sec. 2. Section 669.21, subsection 2, Code 2019, is amended
11by adding the following new paragraph:
12 NEW PARAGRAPH. c. The duty to indemnify and hold harmless
13shall not apply if the employee is accused of committing an
14unfair or discriminatory employment practice in violation of
15state or federal law. If the employee is accused of committing
16an unfair or discriminatory employment practice in violation of
17state or federal law and the accusation results in an award by
18a court, the duty to compensate the plaintiff shall apply, but
19the state shall seek restitution from the employee.
20 Sec. 3. Section 669.22, Code 2019, is amended to read as
21follows:
22669.22 Actions in federal court.
231. The state shall defend any employee, and shall indemnify
24and hold harmless an employee of the state in any action
25commenced in federal court under 42 U.S.C. §1983 against the
26employee for acts of the employee while acting in the scope
27of employment. The duty to indemnify and hold harmless shall
28not apply and the state shall be entitled to restitution
29from an employee if the employee fails to cooperate in the
30investigation or defense of the claim or demand, or if, in
31an action commenced by the state against the employee, it is
32determined that the conduct of the employee upon which the
33claim or demand was based constituted a willful and wanton act
34or omission or malfeasance in office.
352. The duty to indemnify and hold harmless shall not
-1-1apply if the employee is accused of committing an unfair or
2discriminatory employment practice in violation of federal
3law. If the employee is accused of committing an unfair or
4discriminatory employment practice in violation of federal law
5and the accusation results in an award by a court, the duty to
6compensate the plaintiff shall apply, but the state shall seek
7restitution from the employee.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11Under current law, the state has waived sovereign immunity
12for certain tort claims, which are defined as monetary,
13pursuant to the Iowa tort claims Act, Code chapter 669. Under
14current law, if a state employee is acting within the scope of
15the employee’s office or employment, the state will defend and
16will indemnify and hold harmless the employee or substitute
17as the defendant in place of the state employee. Thus under
18current law, unless the employee is acting outside the scope
19of the employee’s office or employment, the employee is not
20personally liable for torts.
21In accordance with the Iowa civil rights Act, Code chapter
22216, and federal law, it is unlawful for state employees to
23engage in unfair or discriminatory employment practices.
24Under the bill, the state will defend, but will not indemnify
25and hold harmless a defendant state employee if the claims
26arise out of the employee committing unfair or discriminatory
27employment practices in violation of state or federal law.
28Under the bill, if a state employee is accused of employment
29discrimination and it results in an award by a court, the
30state would pay the award but then would be required to
31seek restitution from the offending state employee. The
32result would allow the plaintiff to receive an award from
33the state but would require the state to recover as much of
34a court-ordered award as possible from the offending state
35employee.
-2- 1In addition, new Code section 7E.9 requires each department
2head and director or administrator of an independent agency
3to obtain personal liability insurance to insure against any
4claim that the person committed an unfair or discriminatory
5employment practice in violation of law.
-3-ec/rn
2employees committing unfair or discriminatory employment
3practices, including personal liability insurance
4requirements.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 7E.9 Personal liability insurance
2requirements.
3Each head of a department and each director or administrator
4of an independent agency shall, as a condition of their
5appointment or selection for that position, obtain personal
6liability insurance, in such amount as determined by the office
7of the attorney general, to insure against any claim that
8the person committed an unfair or discriminatory employment
9practice in violation of state or federal law.
10 Sec. 2. Section 669.21, subsection 2, Code 2019, is amended
11by adding the following new paragraph:
12 NEW PARAGRAPH. c. The duty to indemnify and hold harmless
13shall not apply if the employee is accused of committing an
14unfair or discriminatory employment practice in violation of
15state or federal law. If the employee is accused of committing
16an unfair or discriminatory employment practice in violation of
17state or federal law and the accusation results in an award by
18a court, the duty to compensate the plaintiff shall apply, but
19the state shall seek restitution from the employee.
20 Sec. 3. Section 669.22, Code 2019, is amended to read as
21follows:
22669.22 Actions in federal court.
231. The state shall defend any employee, and shall indemnify
24and hold harmless an employee of the state in any action
25commenced in federal court under 42 U.S.C. §1983 against the
26employee for acts of the employee while acting in the scope
27of employment. The duty to indemnify and hold harmless shall
28not apply and the state shall be entitled to restitution
29from an employee if the employee fails to cooperate in the
30investigation or defense of the claim or demand, or if, in
31an action commenced by the state against the employee, it is
32determined that the conduct of the employee upon which the
33claim or demand was based constituted a willful and wanton act
34or omission or malfeasance in office.
352. The duty to indemnify and hold harmless shall not
-1-1apply if the employee is accused of committing an unfair or
2discriminatory employment practice in violation of federal
3law. If the employee is accused of committing an unfair or
4discriminatory employment practice in violation of federal law
5and the accusation results in an award by a court, the duty to
6compensate the plaintiff shall apply, but the state shall seek
7restitution from the employee.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11Under current law, the state has waived sovereign immunity
12for certain tort claims, which are defined as monetary,
13pursuant to the Iowa tort claims Act, Code chapter 669. Under
14current law, if a state employee is acting within the scope of
15the employee’s office or employment, the state will defend and
16will indemnify and hold harmless the employee or substitute
17as the defendant in place of the state employee. Thus under
18current law, unless the employee is acting outside the scope
19of the employee’s office or employment, the employee is not
20personally liable for torts.
21In accordance with the Iowa civil rights Act, Code chapter
22216, and federal law, it is unlawful for state employees to
23engage in unfair or discriminatory employment practices.
24Under the bill, the state will defend, but will not indemnify
25and hold harmless a defendant state employee if the claims
26arise out of the employee committing unfair or discriminatory
27employment practices in violation of state or federal law.
28Under the bill, if a state employee is accused of employment
29discrimination and it results in an award by a court, the
30state would pay the award but then would be required to
31seek restitution from the offending state employee. The
32result would allow the plaintiff to receive an award from
33the state but would require the state to recover as much of
34a court-ordered award as possible from the offending state
35employee.
-2- 1In addition, new Code section 7E.9 requires each department
2head and director or administrator of an independent agency
3to obtain personal liability insurance to insure against any
4claim that the person committed an unfair or discriminatory
5employment practice in violation of law.
-3-ec/rn