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General Assembly Raised Bill No. 815
January Session, 2019
LCO No. 3762
Referred to Committee on HIGHER EDUCATION AND
EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)
AN ACT ALLOWING INSU RANCE POLICIES IN LIEU OF SURETY
BONDS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (e) of section 10a-179 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective July 2
1, 2019): 3
(e) (1) Each member of the board shall execute a surety bond in the 4
penal sum of fifty thousand dollars and the executive director and the 5
other officers of the authority shall execute a surety bond in the penal 6
sum of one hundred thousand dollars, or, in lieu thereof, the chairman 7
of the board shall execute a blanket position bond covering each 8
member, the executive director and the employees of the authority, 9
each surety bond to be conditioned upon the faithful performance of 10
the duties of the office or offices covered, to be executed by a surety 11
company authorized to transact business in this state as surety and to 12
be approved by the Attorney General and filed in the office of the 13
Secretary of the State. [The cost of each such bond shall be paid by the 14 Raised Bill No. 815
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authority] The authority shall pay the cost of each such bond. 15
(2) In lieu of a bond, the authority may obtain from an insurance 16
company an insurance policy or policies, in the penal sum of not less 17
than one hundred thousand dollars per each occurrence, covering the 18
authority if the executive director or other officer or employee of the 19
authority or any member of the board performing specific directorial 20
acts on behalf of the authority fails to faithfully perform the duties of 21
such person's position with the authority. The authority shall 22
determine any applicable deductible or self-insured retention and pay 23
the cost of the coverage for such policy. 24
Sec. 2. Subsection (c) of section 10a-224 of the general statutes is 25
repealed and the following is substituted in lieu thereof (Effective July 26
1, 2019): 27
(c) (1) Before the issuance of any bonds or notes under the 28
provisions of this chapter, the chairman and vice-chairman of the 29
board of directors, the executive director and any other member of the 30
board authorized by resolution of the board to handle funds or sign 31
checks of the authority and any other authorized officer shall execute a 32
surety bond in the penal sum of fifty thousand dollars, or in lieu 33
thereof the chairman shall obtain a blanket position bond covering the 34
executive director and every member of the board and other employee 35
or authorized officer of the authority in the penal sum of fifty 36
thousand dollars. Each such bond shall be conditioned upon the 37
faithful performance of the duties of the principal or the members, 38
executive director and other authorized officers or employees, as the 39
case may be, shall be executed by a surety company authorized to 40
transact business in the state as surety, and shall be filed in the office of 41
the Secretary of the State. [The cost of each such bond shall be paid by 42
the authority] The authority shall pay the cost of each such bond. 43
(2) In lieu of a bond, the authority may obtain from an insurance 44
company an insurance policy or policies, in the penal sum of not less 45
than one hundred thousand dollars per each occurrence, covering the 46 Raised Bill No. 815
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authority if the executive director or other officer or employee of the 47
authority or any member of the board performing specific directorial 48
acts on behalf of the authority fails to faithfully perform the duties of 49
such person's position with the authority. The authority shall 50
determine any applicable deductible or self-insured retention and pay 51
the cost of the coverage for such policy. 52
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019 10a-179(e)
Sec. 2 July 1, 2019 10a-224(c)
Statement of Purpose:
To allow the Connecticut Health and Educational Facilities Authority
and the Connecticut Higher Education Supplemental Loan Authority
to obtain an insurance policy in lieu of a surety bond to ensure the
faithful performance of the duties of authorized officers or employees
of the authority.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]