It is enacted by the General Assembly as follows:

SECTION 1. Section 9-31-12 of the General Laws in Chapter 9-31 entitled "Governmental Tort Liability" is hereby amended to read as follows:

{ADD 9-31-12. ADD} {DEL Indemnification -- Reservation of obligation -- Limitation of amount DEL} {ADD Indemnification -- Reservation of obligation -- Certification. -- ADD} {ADD (a) ADD} The state reserves the right to determine whether or not it will indemnify any employees defended pursuant to sections 9-31-8 -- 9-31-11, inclusive, if a judgment is rendered against said employee {DEL ; provided, however, that such indemnification shall not exceed fifty thousand dollars ($50,000) DEL} .

{ADD (b) Upon certification by the court in which the tort action against a state employee is pending that (1) the defendant employee was acting within the scope of his or her office or employment when the claim arose and (2) the claim does not arise out of actual fraud, willful misconduct or actual malice by the employee, any civil action or proceeding commenced upon such claim under this statute shall be deemed to be an action or proceeding brought against the state of Rhode Island under the provisions of this title and all references thereto, and the State of Rhode Island shall be substituted as the party defendant. ADD}

SECTION 2. This act shall take effect upon passage.