As Introduced
132nd General Assembly
Regular Session H. B. No. 291
2017-2018
Representative Wiggam
Cosponsors: Representatives Lipps, Seitz, Arndt, Merrin, Goodman, Dean, Stein, Henne
A BILL
To enact sections 307.442, 505.604, and 701.02 of the Revised Code to authorize counties, townships, and municipal corporations to purchase an employee dishonesty and faithful performance of duty insurance policy, instead of a bond, for protection from loss due to the fraudulent or dishonest actions of, and the failure to perform a duty prescribed by law by, an officer, official, employee, or appointee for which a bond is required by law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 307.442, 505.604, and 701.02 of the Revised Code be enacted to read as follows:
Sec. 307.442. (A) As used in this section, "employee dishonesty and faithful performance of duty policy" means a policy of insurance purchased to protect a county from financial or property loss due to the fraudulent or dishonest actions of, and the failure to perform a duty prescribed by law by, a county officer, official, employee, or appointee that, before the effective date of this section, was required by law to give a bond.
(B) A board of county commissioners or any other board or county officer, official, employee, or appointee that is required under Title III of the Revised Code to pay for a surety bond conditioned on the faithful performance of a county officer's, official's, employee's, or appointee's duties, instead of the bond, may purchase an employee dishonesty and faithful performance of duty policy in a coverage amount that is equal to or greater than the maximum amount of the bond required by law to be given. The policy shall not exclude from coverage a county officer, official, employee, or appointee required by law to be bonded. The policy shall be payable to the same entity to which the surety bond is required to be payable under the law requiring the bond. The policy shall be delivered to or filed with the same entity with whom the law requires the surety bond to be delivered or filed.
Sec. 505.604. (A) As used in this section, "employee dishonesty and faithful performance of duty policy" means a policy of insurance purchased to protect a township from financial or property loss due to the fraudulent or dishonest actions of, and the failure to perform a duty prescribed by law by, a township officer, official, employee, or appointee that, before the effective date of this section, was required by law to give a bond.
(B) A board of township trustees or any other board or township officer, official, employee, or appointee that is required under Title V of the Revised Code to pay for a surety bond conditioned on the faithful performance of a township officer's, official's, employee's, or appointee's duties, instead of the bond, may purchase an employee dishonesty and faithful performance of duty policy in a coverage amount that is equal to or greater than the maximum amount of the bond required by law to be given. The policy shall not exclude from coverage a township officer, official, employee, or appointee required by law to be bonded. The policy shall be payable to the same entity to which the surety bond is required to be payable under the law requiring the bond. The policy shall be recorded by and filed with the same entity with whom the law requires the surety bond to be recorded and filed.
Sec. 701.02. (A) As used in this section, "employee dishonesty and faithful performance of duty policy" means a policy of insurance purchased to protect a municipal corporation from financial or property loss due to the fraudulent or dishonest actions of, and the failure to perform a duty prescribed by law by, an officer, official, employee, appointee, or member of a board of the municipal corporation that, before the effective date of this section, was required by law to give a bond.
(B) The legislative authority of a municipal corporation or any other officer, official, employee, appointee, or member of a board of the municipal corporation that is required under Title VII of the Revised Code or by ordinance to pay for a surety bond conditioned on the faithful performance of an officer's, official's, employee's, appointee's, or board member's duties, instead of the bond, may purchase an employee dishonesty and faithful performance of duty policy in a coverage amount that is equal to or greater than the maximum amount of the bond required by law to be given. The policy shall not exclude from coverage an officer, official, employee, appointee, or member of a board of the municipal corporation required by law to be bonded. The policy shall be payable to the same entity to which the surety bond is required to be payable under the law requiring the bond. The policy shall be recorded by and filed with the same entity with whom the law requires the surety bond to be recorded and filed.