Iowa Senate Bill SF2121

Iowa 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/25/24

Caption

A bill for an act relating to bonds and insurance policies for public officers.

Impact

This legislative change could have significant implications for public administration in Iowa. By allowing insurance policies as an alternative to bonds, it could ease the compliance burden on public officers, making it easier for them to fulfill their obligations and continue their functions without interruption. The bill stipulates that the state of Iowa will be the beneficiary of these insurance policies, allowing for claims made by injured parties or entities to be pursued under the policy framework. It also mandates that expenses associated with securing these policies be covered by the relevant county or township, just as they are for traditional bonds.

Summary

Senate File 2121 relates to the obligations of public officers regarding bonds and insurance policies. The bill provides alternative provisions allowing public officers required to obtain bonds to instead secure an insurance policy. This policy must meet specific conditions, including a minimum coverage amount equal to that of the required bond. The bill aims to streamline the process for public officers by offering a viable alternative to traditional bonding requirements, which many may find more accessible or economical.

Contention

The introduction of SF2121 may bring about discussions regarding the adequacy of insurance policies compared to traditional bonds. Opponents might argue concerns over the potential reduced financial security for the state and the public if the insurance policies do not provide equivalent assurances as the bonds. Furthermore, the shift to insurance might lead to regulatory adjustments that require additional oversight and administration, which could raise questions about implementation and accountability in public office management.