Connecticut Senate Bill SB00681

Connecticut 2025 Regular Session

• Introduced: 1/16/25
• Refer: 1/16/25

Caption

An Act Exempting Nonprofit Organizations From The Insurance And Indemnity Bond Requirements.

Impact

The implications of SB00681 potentially include increased operational flexibility for nonprofit organizations. By exempting these entities from certain insurance and indemnity bond mandates, the bill aims to alleviate financial constraints that may inhibit their ability to function or expand their services. This could result in enhanced mobility for nonprofits that provide essential transport services, allowing them to allocate resources towards their core missions rather than insurance costs.

Summary

SB00681 proposes to amend the Connecticut General Statutes to exempt nonprofit organizations from the insurance and indemnity bond requirements that are generally applicable to certain motor vehicle owners. The bill specifically targets the regulations stated in section 14-29 of the statutes, which outlines the insurance obligations for motor vehicle owners. If passed, the bill would provide relief for nonprofits operating service buses by removing the additional financial burden associated with these insurance requirements.

Contention

While the bill is expected to gain support from nonprofit organizations and advocates for reduced regulatory burdens, there may be points of contention regarding the financial responsibility clause. The requirement that the Commissioner of Motor Vehicles determines sufficient financial responsibility to cover liability for personal injury, death, or damage may lead to debates about the extent of liability safeguards in place for the public. Opponents might argue that this exemption could lead to an increase in risk for service bus operations if adequate insurance is not maintained, jeopardizing public safety.