§198D-7.5  Agreements to defend andindemnify.  (a)  The department may enter into agreements with owners ofpublic or private land to further the purposes of this chapter.  Agreementsbetween the State and an owner may provide that the State will defend theowner, its affiliates, and their respective heirs, executors, administrators,representatives, successors, trustees, guardians, assigns, lessees, officers,directors, stockholders, employees, agents, and partners, from claims made bypublic users of the owner’s land. 

(b)  These agreements may also provide that theState will indemnify the owner, its affiliates, and their respective heirs,executors, administrators, representatives, successors, trustees, guardians,assigns, lessees, officers, directors, stockholders, employees, agents, andpartners, for property losses incurred due to public use, subject to thefollowing provisions:

(1)  The attorney general may review any claim;

(2)  The attorney general may refer a claim associatedwith property loss to the chairperson of the board of land and naturalresources for informal resolution subject to the terms of an agreement;

(3)  All claims of property loss that are subject tothe terms of an agreement shall be reviewed in the first instance by the chairpersonfor resolution as provided for in an agreement.  The chairperson may compromiseor settle claims for property loss from the trail and access program specialfunds for an amount not exceeding $10,000 per fiscal year, and the chairpersonmay pay claims for property loss up to this amount without the review of theattorney general;

(4)  Upon referral by the chairperson, the attorneygeneral, in the attorney general's discretion, shall make determinations ofwhether a claim for property loss would or would not be subject to the terms ofan agreement; and

(5)  Claims greater than $10,000 per fiscal year shallbe subject to appropriation and allotment.

(c)  The existence of an agreement does notallow an action to be brought against the State.  The State shall not be made aparty in any action solely because of the existence of an agreement to defendor indemnify.  Any action defended by the State pursuant to an agreement shallbe deemed an action against the owner, and the State may assert all defenses availableto the owner, its affiliates, and their respective heirs, executors,administrators, representatives, successors, trustees, guardians, assigns,lessees, officers, directors, stockholders, employees, agents, and partners.

(d)  If the agreement provides forindemnification by the State, no judgment shall be executed against an owner,its affiliates, and their respective heirs, executors, administrators,representatives, successors, trustees, guardians, assigns, lessees, officers,directors, stockholders, employees, agents, and partners, until the legislaturehas reviewed and approved the judgment. [L 1992, c 216, §1; am L 2005, c 175,§2]