GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION
CHAPTER 674
The General Assembly of North Carolina enacts:
Section 1. Article 31A of Chapter 143 of the General Statutes is amended by adding at the end a new section to read:
"§ 143-300.9. Payment of excess damages relating to unconstitutional taxes.
In an action to which this Article applies, the State shall pay the excess amount of a judgment or settlement under G.S. 143-300.6 for damages against a State employee for collecting or administering a tax that is held unconstitutional. The excess amount is the amount of the judgment or settlement over (i) the limit provided in G.S. 143-300.6(a) and (ii) any coverage under G.S. 58-32-15. This section does not waive the sovereign immunity of the State with respect to any claim."
Sec. 2. G.S. 143-300.6 reads as rewritten:
"§ 143-300.6. Payments of judgments; compromise and settlement of claims.
(a) Payment of
Judgments and Settlements. In an action to which this Article applies,
the State shall pay (i) a final judgment awarded in a court of competent
jurisdiction against a State employee or (ii) the amount due under a settlement
of the action under this section. The unit of State government by which
the employee was employed shall make the payment. This section does not
waive the sovereign immunity of the State with respect to any claim. A
payment of a judgment or settlement of a claim against a State employee or
several State employees as joint tort-feasors may not exceed the amount payable
for one claim under the Tort Claims Act. All final judgments
awarded in courts of competent jurisdiction against State employees in actions
or suits to which this Article applies, or any amounts payable under a
settlement of such suits in accordance with this section, shall be paid by the
department, agency, board, commission, institution, bureau or authority which
employs or employed the State employee. Nothing in this section shall be
deemed to waive the sovereign immunity of the State with respect to a claim
covered by this section. No payment of a judgment or settlement of a claim
against a State employee or several State employees as joint tort-feasors shall
exceed the amount payable for any one claim under the Tort Claims Act.
(b) Settlement of
Claims. The Attorney General may compromise and settle any claim
covered by this section to the extent that he finds the same to be
valid, claim valid. A settlement in excess of the limit provided
in subsection (a) must be approved by the employee. In an action in which
the Attorney General has stated in writing that private counsel should be
provided the employee because of a conflict of interest between the employee
and the State, a settlement in excess of the limit provided in subsection (a)
must be approved by the private counsel. provided that no settlement
of any such claim in an amount in excess of the limit provided in the Tort
Claims Act shall be made without the approval of the employee. In a case
wherein the Attorney General has stated in writing that private counsel ought
to be provided because of a conflict with the interests of the State, the
settlement in excess of the limit provided in the Tort Claims Act must be
approved by the private counsel.
(c) Other
Insurance. The coverage afforded employees and former employees under
this Article shall be excess coverage over any commercial liability insurance
up to the limit of the Tort Claims Act, insurance, other than insurance
written under G.S. 58-32-15, up to the limit provided in subsection (a). except
that this subsection shall not apply to programs of insurance written under the
authority of G.S. 143B-424.1; and programs of insurance written under G.S.
143B-424.1 shall not be deemed to be commercial liability insurance within the
meaning of this section."
Sec. 3. G.S. 58-32-15(b) reads as rewritten:
"(b) The Commission,
pursuant to this section, may acquire professional liability insurance covering
the officers and employees, or any group thereof, of a department, institution
or agency of State government or a community college or technical college only
if the coverage to be provided by such the insurance policy is in
excess of the protection provided by Articles 31 and 31A of General Statutes
Chapter 143. Chapter 143 of the General Statutes, other than the
protection provided by G.S. 143-300.9."
Sec. 4. This act is effective upon ratification and applies to payments made on or after the date of ratification.
In the General Assembly read three times and ratified this the 13th day of July, 1991.
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James C. Gardner
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives