1     
LOCAL GOVERNMENT OFFICER BONDING AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Val K. Potter

5     
Senate Sponsor: Lyle W. Hillyard

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7     LONG TITLE
8     General Description:
9          This bill amends provisions related to municipal officer bonds.
10     Highlighted Provisions:
11          This bill:
12          ▸     reorganizes provisions related to municipal officer bonds; and
13          ▸     modifies the acceptable forms of bonds for municipal officers to include a general
14     fidelity bond or a theft and crime insurance policy.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     ENACTS:
21          10-3-831, Utah Code Annotated 1953
22     REPEALS:
23          10-3-819, as last amended by Laws of Utah 1987, Chapter 92
24          10-3-820, as last amended by Laws of Utah 2008, Chapter 19
25          10-3-821, as enacted by Laws of Utah 1977, Chapter 48
26          10-3-822, as enacted by Laws of Utah 1977, Chapter 48
27          10-3-823, as enacted by Laws of Utah 1977, Chapter 48
28          10-3-824, as enacted by Laws of Utah 1977, Chapter 48
29          10-3-825, as enacted by Laws of Utah 1977, Chapter 48

30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 10-3-831 is enacted to read:
33          10-3-831. Fidelity bonds and theft or crime insurance.
34          (1) As used in this section, "municipal officer" means:
35          (a) the mayor;
36          (b) each member of the municipal legislative body;
37          (c) the municipal treasurer; and
38          (d) anyone for whom the municipal legislative body determines a general fidelity or
39     public employee blanket bond or theft or crime insurance should be acquired.
40          (2) (a) (i) Except as provided in Subsection (2)(b), the legislative body of each
41     municipality shall prescribe the amount of a general fidelity bond or theft or crime insurance to
42     be acquired for the municipal officer.
43          (ii) If, under Subsection (2)(a)(i), a municipality has prescribed the amount of the
44     general fidelity bond required, then theft or crime insurance in an amount that is not less than
45     the bond satisfies the requirement described in Subsection (2)(a)(i).
46          (iii) Before a municipal officer may discharge the duties of the officer's office, the
47     municipality shall have in place a bond or theft or crime insurance covering the municipal
48     officer in the amounts the municipality prescribes.
49          (b) Before the municipal treasurer may discharge the duties of the treasurer's office, the
50     municipality shall have in place a bond or theft or crime insurance covering the treasurer in an
51     amount not less than the amount the State Money Management Council, created in Section
52     51-7-16, prescribes.
53          (c) A municipal legislative body may acquire a fidelity bond or theft or crime insurance
54     on all municipal officers and the municipal treasurer as a group rather than individually.
55          (3) The municipal legislative body shall pay the cost of each fidelity bond and theft or
56     crime insurance policy from municipal funds.
57          (4) The municipal recorder shall file and maintain each fidelity bond acquired under

58     this section.
59          Section 2. Repealer.
60          This bill repeals:
61          Section 10-3-819, Bonds required.
62          Section 10-3-820, Bonds of officers in cities of the first and second class.
63          Section 10-3-821, Bond of treasurers.
64          Section 10-3-822, Approval of bonds.
65          Section 10-3-823, Premium paid by municipality.
66          Section 10-3-824, Bonds of first officers after incorporation.
67          Section 10-3-825, Additional bonds.