Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                         CHAPTER 79-S.F.No. 53 
           An act relating to municipal liability; providing for 
          indemnification of employees for punitive damages; 
          amending Minnesota Statutes 1986, sections 466.06; and 
          466.07, subdivision 1; repealing Minnesota Statutes 
          1986, section 466.07, subdivisions 1a, 2, and 4. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 466.06, is 
amended to read:  
    466.06 [LIABILITY INSURANCE.] 
    The governing body of any municipality may procure 
insurance against liability of the municipality and its 
officers, employees, and agents for damages, including punitive 
damages, resulting from its torts and those of its officers, 
employees, and agents, including torts specified in section 
466.03 for which the municipality is immune from liability.  The 
insurance may provide protection in excess of the limit of 
liability imposed by section 466.04.  If the municipality has 
the authority to levy taxes, the premium costs for such 
insurance may be levied in excess of any per capita or millage 
tax limitation imposed by statute or charter.  However, a school 
district may not levy pursuant to this section for premium costs 
for motor vehicle insurance protecting against injuries or 
damages arising out of the operation of district owned, 
operated, leased, or controlled vehicles for the transportation 
of pupils for purposes for which state aid is authorized under 
section 124.223, or for purposes for which the district is 
authorized to levy under section 275.125, subdivision 5d.  Any 
independent board or commission in the municipality having 
authority to disburse funds for a particular municipal function 
without approval of the governing body may similarly procure 
liability insurance with respect to the field of its operation.  
The procurement of such insurance constitutes a waiver of the 
defense of governmental immunity to the extent of the liability 
stated in the policy but has no effect on the liability of the 
municipality beyond the coverage so provided. 
    Sec. 2.  Minnesota Statutes 1986, section 466.07, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORITY TO INDEMNIFY INDEMNIFICATION 
REQUIRED.] The governing body of any Subject to the limitations 
in section 466.04, a municipality may or an instrumentality of a 
municipality shall defend, save harmless, and indemnify any of 
its officers and employees, whether elective or 
appointive, against any tort claim or demand, whether groundless 
or otherwise, arising out of an alleged act or omission 
occurring in the performance of duty.  Any independent board or 
commission of the municipality having authority to disburse 
funds for a particular function without approval of the 
governing body may similarly defend, save harmless, and 
indemnify its officers and employees against such tort claims or 
demands for damages, including punitive damages, claimed or 
levied against the officer or employee, provided that the 
officer or employee: 
    (1) was acting in the performance of the duties of the 
position; and 
    (2) was not guilty of malfeasance in office, willful 
neglect of duty, or bad faith.  
    Sec. 3.  [REPEALER.] 
    (a) Minnesota Statutes 1986, section 466.07, subdivisions 
1a and 2, are repealed. 
    (b) Minnesota Statutes 1986, section 466.07, subdivision 4, 
is repealed. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Notwithstanding section 645.21, section 3, paragraph (b), 
is effective retroactive to July 1, 1986. 
    Approved May 11, 1987