Senate Bill No. 815
Public Act No. 19-83
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
repealed and the following is substituted in lieu thereof (Effective July
1, 2019):
(e) (1) Each member of the board shall execute a surety bond in the
penal sum of fifty thousand dollars and the executive director and the
other officers of the authority shall execute a surety bond in the penal
sum of one hundred thousand dollars, or, in lieu thereof, the chairman
of the board shall execute a blanket position bond covering each
member, the executive director and the employees of the authority,
each surety bond to be conditioned upon the faithful performance of
the duties of the office or offices covered, to be executed by a surety
company authorized to transact business in this state as surety and to
be approved by the Attorney General and filed in the office of the
Secretary of the State. [The cost of each such bond shall be paid by the
authority] The authority shall pay the cost of each such bond.
(2) In lieu of a bond, the authority may obtain from an insurance
company an insurance policy or policies, in the penal sum of not less Senate Bill No. 815
Public Act No. 19-83 2 of 3
than one hundred thousand dollars per each occurrence, covering the
authority if the executive director or other officer or employee of the
authority or any member of the board performing specific directorial
acts on behalf of the authority fails to faithfully perform the duties of
such person's position with the authority. The authority shall
determine any applicable deductible or self-insured retention and pay
the cost of the coverage for such policy.
Sec. 2. Subsection (c) of section 10a-224 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective July
1, 2019):
(c) (1) Before the issuance of any bonds or notes under the
provisions of this chapter, the chairman and vice-chairman of the
board of directors, the executive director and any other member of the
board authorized by resolution of the board to handle funds or sign
checks of the authority and any other authorized officer shall execute a
surety bond in the penal sum of fifty thousand dollars, or in lieu
thereof the chairman shall obtain a blanket position bond covering the
executive director and every member of the board and other employee
or authorized officer of the authority in the penal sum of fifty
thousand dollars. Each such bond shall be conditioned upon the
faithful performance of the duties of the principal or the members,
executive director and other authorized officers or employees, as the
case may be, shall be executed by a surety company authorized to
transact business in the state as surety, and shall be filed in the office of
the Secretary of the State. [The cost of each such bond shall be paid by
the authority] The authority shall pay the cost of each such bond.
(2) In lieu of a bond, the authority may obtain from an insurance
company an insurance policy or policies, in the penal sum of not less
than one hundred thousand dollars per each occurrence, covering the
authority if the executive director or other officer or employee of the
authority or any member of the board performing specific directorial Senate Bill No. 815
Public Act No. 19-83 3 of 3
acts on behalf of the authority fails to faithfully perform the duties of
such person's position with the authority. The authority shall
determine any applicable deductible or self-insured retention and pay
the cost of the coverage for such policy.