Bill Text: IA SF455 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to restitution for claims arising from state employees committing unfair or discriminatory employment practices, including personal liability insurance requirements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-06 - Subcommittee: Whiting, Celsi, and Schultz. S.J. 485. [SF455 Detail]

Download: Iowa-2019-SF455-Introduced.html
Senate File 455 - Introduced SENATE FILE 455 BY CELSI A BILL FOR An Act relating to restitution for claims arising from state 1 employees committing unfair or discriminatory employment 2 practices, including personal liability insurance 3 requirements. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2652XS (2) 88 ec/rn
S.F. 455 Section 1. NEW SECTION . 7E.9 Personal liability insurance 1 requirements. 2 Each head of a department and each director or administrator 3 of an independent agency shall, as a condition of their 4 appointment or selection for that position, obtain personal 5 liability insurance, in such amount as determined by the office 6 of the attorney general, to insure against any claim that 7 the person committed an unfair or discriminatory employment 8 practice in violation of state or federal law. 9 Sec. 2. Section 669.21, subsection 2, Code 2019, is amended 10 by adding the following new paragraph: 11 NEW PARAGRAPH . c. The duty to indemnify and hold harmless 12 shall not apply if the employee is accused of committing an 13 unfair or discriminatory employment practice in violation of 14 state or federal law. If the employee is accused of committing 15 an unfair or discriminatory employment practice in violation of 16 state or federal law and the accusation results in an award by 17 a court, the duty to compensate the plaintiff shall apply, but 18 the state shall seek restitution from the employee. 19 Sec. 3. Section 669.22, Code 2019, is amended to read as 20 follows: 21 669.22 Actions in federal court. 22 1. The state shall defend any employee, and shall indemnify 23 and hold harmless an employee of the state in any action 24 commenced in federal court under 42 U.S.C. §1983 against the 25 employee for acts of the employee while acting in the scope 26 of employment. The duty to indemnify and hold harmless shall 27 not apply and the state shall be entitled to restitution 28 from an employee if the employee fails to cooperate in the 29 investigation or defense of the claim or demand, or if, in 30 an action commenced by the state against the employee, it is 31 determined that the conduct of the employee upon which the 32 claim or demand was based constituted a willful and wanton act 33 or omission or malfeasance in office. 34 2. The duty to indemnify and hold harmless shall not 35 -1- LSB 2652XS (2) 88 ec/rn 1/ 3
S.F. 455 apply if the employee is accused of committing an unfair or 1 discriminatory employment practice in violation of federal 2 law. If the employee is accused of committing an unfair or 3 discriminatory employment practice in violation of federal law 4 and the accusation results in an award by a court, the duty to 5 compensate the plaintiff shall apply, but the state shall seek 6 restitution from the employee. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 Under current law, the state has waived sovereign immunity 11 for certain tort claims, which are defined as monetary, 12 pursuant to the Iowa tort claims Act, Code chapter 669. Under 13 current law, if a state employee is acting within the scope of 14 the employee’s office or employment, the state will defend and 15 will indemnify and hold harmless the employee or substitute 16 as the defendant in place of the state employee. Thus under 17 current law, unless the employee is acting outside the scope 18 of the employee’s office or employment, the employee is not 19 personally liable for torts. 20 In accordance with the Iowa civil rights Act, Code chapter 21 216, and federal law, it is unlawful for state employees to 22 engage in unfair or discriminatory employment practices. 23 Under the bill, the state will defend, but will not indemnify 24 and hold harmless a defendant state employee if the claims 25 arise out of the employee committing unfair or discriminatory 26 employment practices in violation of state or federal law. 27 Under the bill, if a state employee is accused of employment 28 discrimination and it results in an award by a court, the 29 state would pay the award but then would be required to 30 seek restitution from the offending state employee. The 31 result would allow the plaintiff to receive an award from 32 the state but would require the state to recover as much of 33 a court-ordered award as possible from the offending state 34 employee. 35 -2- LSB 2652XS (2) 88 ec/rn 2/ 3
S.F. 455 In addition, new Code section 7E.9 requires each department 1 head and director or administrator of an independent agency 2 to obtain personal liability insurance to insure against any 3 claim that the person committed an unfair or discriminatory 4 employment practice in violation of law. 5 -3- LSB 2652XS (2) 88 ec/rn 3/ 3
feedback