Connecticut House Bill HB05243

Connecticut 2020 Regular Session

• Introduced: 2/20/20
• Refer: 2/20/20
• Report Pass: 3/5/20

Caption

An Act Concerning Bonds Of Board Members And Other Employees Of The Connecticut Housing Finance Authority.

Impact

The bill's passage is expected to modernize the bonding process for the Connecticut Housing Finance Authority, while ensuring that board members and employees are still protected. By permitting the use of equivalent insurance products, it allows the authority to adapt to current insurance practices, which may offer more favorable terms or conditions compared to conventional surety bonds. This could also expand access to necessary coverage for individuals working in this capacity, ensuring they can perform their duties effectively without unnecessary financial burdens.

Summary

House Bill 5243 addresses the bonding requirements for board members and employees of the Connecticut Housing Finance Authority. The primary aim of the bill is to allow these individuals to secure an equivalent insurance product as an alternative to the traditional surety bond. This change is significant as it provides flexibility and potentially reduces costs associated with securing bonds. The act is set to take effect on July 1, 2020, thereby amending existing statutes that enforce stringent bonding requirements without alternative options.

Contention

Although the bill is not noted to have caused major contention, it reflective of wider discussions on regulatory efficiency and the management of public entities. Discussions around bonding practices often highlight the balance between necessary oversight and the practicalities of operating within budgetary constraints. The provisions of HB 5243 promote a more streamlined approach to compliance while maintaining necessary protections, and it appears to have gained bipartisan support, as indicated by a unanimous vote tally of 12-0 during a joint favorable review.