Connecticut 2019 Regular Session

Connecticut Senate Bill SB00815 Compare Versions

Version 1 (Old)

Version 2 (New)

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	3	+	LCO 3762 \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00815-R01-
	4	+	SB.docx
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4		-	Senate Bill No. 815
	7	+	General Assembly Raised Bill No. 815
	8	+	January Session, 2019
	9	+	LCO No. 3762
5	10
6		-	Public Act No. 19-83
	11	+
	12	+	Referred to Committee on HIGHER EDUCATION AND
	13	+	EMPLOYMENT ADVANCEMENT
	14	+
	15	+
	16	+	Introduced by:
	17	+	(HED)
	18	+
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9	21		AN ACT ALLOWING INSU RANCE POLICIES IN LIEU OF SURETY
10	22		BONDS.
11	23		Be it enacted by the Senate and House of Representatives in General
12	24		Assembly convened:
13	25
14		-	Section 1. Subsection (e) of section 10a-179 of the general statutes is
15		-	repealed and the following is substituted in lieu thereof (Effective July
16		-	1, 2019):
17		-	(e) (1) Each member of the board shall execute a surety bond in the
18		-	penal sum of fifty thousand dollars and the executive director and the
19		-	other officers of the authority shall execute a surety bond in the penal
20		-	sum of one hundred thousand dollars, or, in lieu thereof, the chairman
21		-	of the board shall execute a blanket position bond covering each
22		-	member, the executive director and the employees of the authority,
23		-	each surety bond to be conditioned upon the faithful performance of
24		-	the duties of the office or offices covered, to be executed by a surety
25		-	company authorized to transact business in this state as surety and to
26		-	be approved by the Attorney General and filed in the office of the
27		-	Secretary of the State. [The cost of each such bond shall be paid by the
28		-	authority] The authority shall pay the cost of each such bond.
29		-	(2) In lieu of a bond, the authority may obtain from an insurance
30		-	company an insurance policy or policies, in the penal sum of not less Senate Bill No. 815
	26	+	Section 1. Subsection (e) of section 10a-179 of the general statutes is 1
	27	+	repealed and the following is substituted in lieu thereof (Effective July 2
	28	+	1, 2019): 3
	29	+	(e) (1) Each member of the board shall execute a surety bond in the 4
	30	+	penal sum of fifty thousand dollars and the executive director and the 5
	31	+	other officers of the authority shall execute a surety bond in the penal 6
	32	+	sum of one hundred thousand dollars, or, in lieu thereof, the chairman 7
	33	+	of the board shall execute a blanket position bond covering each 8
	34	+	member, the executive director and the employees of the authority, 9
	35	+	each surety bond to be conditioned upon the faithful performance of 10
	36	+	the duties of the office or offices covered, to be executed by a surety 11
	37	+	company authorized to transact business in this state as surety and to 12
	38	+	be approved by the Attorney General and filed in the office of the 13
	39	+	Secretary of the State. [The cost of each such bond shall be paid by the 14
	40	+	authority] The authority shall pay the cost of each such bond. 15 Raised Bill No. 815
31	41
32		-	Public Act No. 19-83 2 of 3
33	42
34		-	than one hundred thousand dollars per each occurrence, covering the
35		-	authority if the executive director or other officer or employee of the
36		-	authority or any member of the board performing specific directorial
37		-	acts on behalf of the authority fails to faithfully perform the duties of
38		-	such person's position with the authority. The authority shall
39		-	determine any applicable deductible or self-insured retention and pay
40		-	the cost of the coverage for such policy.
41		-	Sec. 2. Subsection (c) of section 10a-224 of the general statutes is
42		-	repealed and the following is substituted in lieu thereof (Effective July
43		-	1, 2019):
44		-	(c) (1) Before the issuance of any bonds or notes under the
45		-	provisions of this chapter, the chairman and vice-chairman of the
46		-	board of directors, the executive director and any other member of the
47		-	board authorized by resolution of the board to handle funds or sign
48		-	checks of the authority and any other authorized officer shall execute a
49		-	surety bond in the penal sum of fifty thousand dollars, or in lieu
50		-	thereof the chairman shall obtain a blanket position bond covering the
51		-	executive director and every member of the board and other employee
52		-	or authorized officer of the authority in the penal sum of fifty
53		-	thousand dollars. Each such bond shall be conditioned upon the
54		-	faithful performance of the duties of the principal or the members,
55		-	executive director and other authorized officers or employees, as the
56		-	case may be, shall be executed by a surety company authorized to
57		-	transact business in the state as surety, and shall be filed in the office of
58		-	the Secretary of the State. [The cost of each such bond shall be paid by
59		-	the authority] The authority shall pay the cost of each such bond.
60		-	(2) In lieu of a bond, the authority may obtain from an insurance
61		-	company an insurance policy or policies, in the penal sum of not less
62		-	than one hundred thousand dollars per each occurrence, covering the
63		-	authority if the executive director or other officer or employee of the
64		-	authority or any member of the board performing specific directorial Senate Bill No. 815
	43	+	LCO 3762 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00815-
	44	+	R01-SB.docx }
	45	+	2 of 3
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66		-	Public Act No. 19-83 3 of 3
	47	+	(2) In lieu of a bond, the authority may obtain from an insurance 16
	48	+	company an insurance policy or policies, in the penal sum of not less 17
	49	+	than one hundred thousand dollars per each occurrence, covering the 18
	50	+	authority if the executive director or other officer or employee of the 19
	51	+	authority or any member of the board performing specific directorial 20
	52	+	acts on behalf of the authority fails to faithfully perform the duties of 21
	53	+	such person's position with the authority. The authority shall 22
	54	+	determine any applicable deductible or self-insured retention and pay 23
	55	+	the cost of the coverage for such policy. 24
	56	+	Sec. 2. Subsection (c) of section 10a-224 of the general statutes is 25
	57	+	repealed and the following is substituted in lieu thereof (Effective July 26
	58	+	1, 2019): 27
	59	+	(c) (1) Before the issuance of any bonds or notes under the 28
	60	+	provisions of this chapter, the chairman and vice-chairman of the 29
	61	+	board of directors, the executive director and any other member of the 30
	62	+	board authorized by resolution of the board to handle funds or sign 31
	63	+	checks of the authority and any other authorized officer shall execute a 32
	64	+	surety bond in the penal sum of fifty thousand dollars, or in lieu 33
	65	+	thereof the chairman shall obtain a blanket position bond covering the 34
	66	+	executive director and every member of the board and other employee 35
	67	+	or authorized officer of the authority in the penal sum of fifty 36
	68	+	thousand dollars. Each such bond shall be conditioned upon the 37
	69	+	faithful performance of the duties of the principal or the members, 38
	70	+	executive director and other authorized officers or employees, as the 39
	71	+	case may be, shall be executed by a surety company authorized to 40
	72	+	transact business in the state as surety, and shall be filed in the office of 41
	73	+	the Secretary of the State. [The cost of each such bond shall be paid by 42
	74	+	the authority] The authority shall pay the cost of each such bond. 43
	75	+	(2) In lieu of a bond, the authority may obtain from an insurance 44
	76	+	company an insurance policy or policies, in the penal sum of not less 45
	77	+	than one hundred thousand dollars per each occurrence, covering the 46
	78	+	authority if the executive director or other officer or employee of the 47
	79	+	authority or any member of the board performing specific directorial 48 Raised Bill No. 815
67	80
68		-	acts on behalf of the authority fails to faithfully perform the duties of
69		-	such person's position with the authority. The authority shall
70		-	determine any applicable deductible or self-insured retention and pay
71		-	the cost of the coverage for such policy.
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	85	+
	86	+	acts on behalf of the authority fails to faithfully perform the duties of 49
	87	+	such person's position with the authority. The authority shall 50
	88	+	determine any applicable deductible or self-insured retention and pay 51
	89	+	the cost of the coverage for such policy. 52
	90	+	This act shall take effect as follows and shall amend the following
	91	+	sections:
	92	+
	93	+	Section 1 July 1, 2019 10a-179(e)
	94	+	Sec. 2 July 1, 2019 10a-224(c)
	95	+
	96	+	HED Joint Favorable
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