1. (a) As used in this section, unless the context otherwise  requires  the term  "employee"  shall  mean any person holding a position by election, appointment or  employment  in  the  service  of  the  state,  including clinical  practice  pursuant  to  subdivision  fourteen  of  section two

hundred six of the public health law, whether or not compensated,  or  a volunteer  expressly  authorized  to  participate  in  a state-sponsored volunteer program, but shall not include an independent contractor.  The term  employee shall include a former employee, his estate or judicially appointed personal representative and persons who assist  the  education

department  or  the  department  of  health  as  consultants  or  expert witnesses in the investigation or prosecution  of  alleged  professional misconduct,  licensure  matters,  restoration  proceedings,  or criminal prosecutions for unauthorized practice pursuant to title  eight  of  the

 education law or title II-A of the public health law.

   (b)  For  the  purposes  of  this  section,  the term "employee" shall include members, officers and other persons in the employment of the New York state energy research and development  authority,  members  of  the board  of directors, officers and other persons in the employment of the New York state science and technology foundation,  and  members  of  the board  of directors, officers and other persons in the employment of the New York state Olympic accommodations control corporation or serving  on its  board  of  directors  on or before June thirtieth, nineteen hundred eighty.

   (c) For the purposes  of  this  section,  the  term  "employee"  shall include   members  of  the  state  patient  qualification  review  board appointed  by  the  commissioner   of   health   pursuant   to article thirty-three-A of the public health law.

   (d)  For  the  purposes  of  this  section,  the term "employee" shall  include directors, officers and employees of the facilities  development corporation.

   (e)  For  the  purposes  of  this  section,  the term "employee" shall include  directors,  officers  and  employees   of   the   environmental facilities  corporation  for  corporate projects involving (i) hazardous waste, (ii) industrial solid waste  activities  as  defined  in  section twelve  hundred  eighty-five-g  of the public authorities law, and (iii) all other activities not covered by professional liability insurance.

   (f) For the purposes  of  this  section,  the  term  "employee"  shall include  ombudsmen  designated under section five hundred forty-four and section five hundred forty-five of the executive law, and shall  include such  ombudsmen  without  regard  to whether they are volunteers or paid staff of the office for the aging or of  designated  substate  ombudsman programs under the direction of the office.

   (g)  For  the  purposes  of  this  section,  the term "employee" shall include the members of the board, officers and employees of the greenway heritage conservancy  for  the  Hudson  river  valley  or  the  greenway council.

   (h)  For  the  purposes  of  this  section,  the term "employee" shall include members of the board, officers and employees  of  the  New  York local government assistance corporation.

   (i)  For  purposes  of this section, the term "employee" shall include the officers and employees of the Central Pine  Barrens  joint  planning and policy commission.

   (j)  For  purposes  of this section, the term "employee" shall include directors, officers and employees of the dormitory authority.

   (k) For the purposes of this section only, the term  "employee"  shall include  any  member,  director, officer or employee of a soil and water conservation district created pursuant to section five of the  soil  and water  conservation  districts  law  who  is  working on a project which receives funding from the state and has received approval by  the  state soil  and water conservation committee or who is carrying out the powers and  duties  pursuant  to article two of the soil and water conservation districts law by working with any agency of  the  state  as  defined  by subdivision  five  of  section  three of the soil and water conservation districts law.   

(l)  For  the  purposes  of  this  section  and  consistent  with  the provisions  of section 13 of a chapter of the laws of 1997, amending the public authorities law, the public health law, the public officers  law, chapter  41  of  the  laws  of  1997  relating to providing a retirement incentive for certain public  employees,  and  the  civil  service  law, relating   to   the  creation  of  the  Roswell  Park  Cancer  Institute corporation  and  providing  for  the   rights,   powers,   duties   and jurisdiction  of  such  corporation,  the  term "employee" shall include directors, officers and employees of the Roswell Park  Cancer  Institute corporation.   

(m)  For  the  purposes  of  this  section,  the term "employee" shall include the members of the spinal cord injury research board within  the department of health.  

(n)  For  the  purposes  of  this  section,  the term "employee" shall include directors, officers, and employees of  the  Governor  Nelson  A. Rockefeller empire state plaza performing arts center corporation.  

(o)  For  the  purposes  of  this  section,  the term "employee" shall include the directors, officers and employees of the state of  New  York mortgage agency.  

(p)  For  the  purposes  of  this  section,  the term "employee" shall include the members, officers and employees  of  the  upstate  New  York tourism council and members of the downstate New York tourism council.  

 

2.  (a)  Upon  compliance  by  the  employee  with  the  provisions of subdivision four of this  section,  the  state  shall  provide  for  the defense  of  the employee in any civil action or proceeding in any state or federal court arising out  of  any  alleged  act  or  omission  which occurred  or  is  alleged  in  the  complaint to have occurred while the employee was acting within the scope of his public employment or duties; or which is brought to enforce a provision of section  nineteen  hundred eighty-one  or  nineteen  hundred eighty-three of title forty-two of the United States code  and  the  act  or  omission  underlying  the  action occurred  or  is  alleged  in  the  complaint to have occurred while the employee was acting within the scope of his public employment or duties. This duty to provide for a defense shall  not  arise  where  such  civil action or proceeding is brought by or on behalf of the state.  

(b)  Subject  to  the  conditions  set  forth in paragraph (a) of this subdivision, the employee shall be entitled to  be  represented  by  the attorney general, provided, however, that the employee shall be entitled to representation by private counsel of his choice in any civil judicial proceeding  whenever  the  attorney  general  determines  based upon his investigation and review of the facts and circumstances of the case that representation by  the  attorney  general  would  be  inappropriate,  or whenever  a  court of competent jurisdiction, upon appropriate motion or by a special proceeding, determines that a conflict of  interest  exists and  that  the employee is entitled to be represented by private counsel of his choice. The attorney general shall notify the employee in writing of such determination that the employee is entitled to be represented by private counsel. The attorney general may require,  as  a  condition  to payment   of   the  fees  and  expenses  of  such  representation,  that appropriate groups of such employees be represented by the same counsel. If the employee or group of employees is entitled to  representation  by private  counsel  under  the  provisions  of  this section, the attorney general shall so certify to the comptroller. Reasonable attorneys'  fees and  litigation  expenses  shall  be  paid  by the state to such private counsel  from  time  to  time during the pendency of the civil action or proceeding subject to certification that the  employee  is  entitled  to representation  under  the  terms  and conditions of this section by the head of the department, commission, division, office or agency in  which such  employee  is  employed  and  upon  the  audit  and  warrant of the comptroller. Any dispute with  respect  to  representation  of  multiple employees  by  a  single counsel or the amount of litigation expenses or the reasonableness of attorneys' fees shall be  resolved  by  the  court upon motion or by way of a special proceeding.  

(c) Where the employee delivers process and a request for a defense to the  attorney  general  as required by subdivision four of this section, the attorney general  shall  take  the  necessary  steps  including  the retention  of private counsel under the terms and conditions provided in paragraph (b) of subdivision two  of  this  section  on  behalf  of  the employee  to avoid entry of a default judgment pending resolution of any question pertaining to the obligation to provide for a defense.  

3. (a) The state shall indemnify and save harmless  its  employees  in the  amount of any judgment obtained against such employees in any state or federal court, or in the amount of any  settlement  of  a  claim,  or shall  pay  such  judgment  or  settlement;  provided,  that  the act or omission from which such judgment or settlement arose occurred while the employee was acting within the scope of his public employment or duties; the duty to indemnify and  save  harmless  or  pay  prescribed  by  this subdivision  shall  not  arise  where the injury or damage resulted from intentional wrongdoing on the part of the employee.  

(b) An employee represented by the  attorney  general  or  by  private counsel pursuant to this section shall cause to be submitted to the head of the department, commission, division, office or agency in which he is employed any proposed settlement which may be subject to indemnification or  payment  by the state and if not inconsistent with the provisions of this section such head of the department, commission,  division,  office or  agency  in  which  he is employed shall certify such settlement, and submit such settlement and certification to the  attorney  general.  The attorney  general  shall  review such proposed settlement as to form and amount, and shall give his approval if in his judgment the settlement is in the best interest of the state. Nothing in this subdivision shall  be construed  to  authorize the state to indemnify and save harmless or pay an employee with respect to a settlement not so reviewed and approved by the attorney general.  

(c) Nothing in this subdivision shall authorize the state to indemnify or save harmless an employee with respect  to  fines  or  penalties,  or money  recovered  from  an  employee  pursuant to article seven-a of the state finance law; provided, however, that the state shall indemnify and save harmless its employees in the amount of any costs, attorneys' fees, damages, fines or penalties  which  may  be  imposed  by  reason  of  an adjudication  that  an  employee,  acting within the scope of his public employment or duties, has, without willfulness or intent  on  his  part, violated  a  prior  order,  judgment,  consent  decree or stipulation of settlement entered in any court of this state or of the  United  States. The  attorney general shall promulgate such rules and regulations as are necessary to effectuate the purposes of this subdivision.  

(d) Upon entry of a final judgment against the employee, or  upon  the settlement of the claim, the employee shall cause to be served a copy of such  judgment  or  settlement, personally or by certified or registered mail within thirty days of the date of entry  or  settlement,  upon  the head  of the department, commission, division, office or agency in which he is employed; and if not inconsistent  with  the  provisions  of  this section,  such  judgment or settlement shall be certified for payment by such  head of the department, commission, division, office or agency. If the attorney general concurs in  such  certification,  the  judgment  or settlement  shall be paid upon the audit and warrant of the comptroller. On or before January fifteenth the comptroller, in consultation with the department of law and other agencies as may be appropriate, shall submit to the governor and the legislature an annual accounting  of  judgments, settlements, fees, and litigation expenses paid pursuant to this section during  the  preceding  and  current fiscal years. Such accounting shall include, but not be limited to the number, type and amount of claims  so paid,  as  well as an estimate of claims to be paid during the remainder of the current fiscal year and during the following fiscal year.  

4. The duty to defend or indemnify and  save  harmless  prescribed  by this  section  shall  be  conditioned  upon (i) delivery to the attorney general or an assistant attorney general at an office of the  department of  law  in  the  state by the employee of the original or a copy of any summons, complaint, process, notice, demand or pleading within five days after he is served with such document, and (ii) the full cooperation  of the  employee in the defense of such action or proceeding and in defense of any action or proceeding against the state based upon the same act or omission, and in the prosecution of any appeal. Such delivery  shall  be deemed  a request by the employee that the state provide for his defense pursuant to this section.  

5. The benefits of this section  shall  inure  only  to  employees  as defined herein and shall not enlarge or diminish the rights of any other party  nor  shall  any provision of this section be construed to affect, alter or repeal any provision of the workers' compensation law.  

6. This section shall not in any way  affect  the  obligation  of  any claimant  to  give notice to the state under section ten of the court of claims act or any other provision of law.  

7. The provisions of this section shall not be  construed  to  impair, alter,  limit  or modify the rights and obligations of any insurer under any policy of insurance.  

8. The provisions of this section  shall  apply  to  all  actions  and proceedings  pending  upon  the  effective  date  thereof  or thereafter instituted.  

9. Except as otherwise specifically  provided  in  this  section,  the provisions  of this section shall not be construed in any way to impair, alter, limit, modify, abrogate or restrict any immunity available to  or conferred upon any unit, entity, officer or employee of the state or any other   level   of   government,   or   any   right  to  defense  and/or indemnification provided for any governmental officer or employee by, in accordance with, or by reason  of,  any  other  provision  of  state  or federal statutory or common law.  

10. If any provision of this section or the application thereof to any person  or  circumstance be held unconstitutional or invalid in whole or in part  by  any  court  of  competent  jurisdiction,  such  holding  of unconstitutionality  or  invalidity shall in no way affect or impair any other provision of this section or the application of any such provision to any other person or circumstance.  

11. The provisions of this section shall not apply to  physicians  who are subject to the provisions of the plan for the management of clinical practice  income  as set forth in the policies of the board of trustees, title 8, New York codes  rules  and  regulations,  regarding  any  civil action or proceeding alleging some professional malpractice in any state or  federal court arising out of the physician's involvement in clinical practice as defined in that plan.

updated 8/25/04