HSB 597 (LSB 5891YC (3) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON LATHAM)

A BILL FOR

An Act relating to bonds and insurance policies for public officers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  64.3  Insurance policy in lieu of bond.
   1.  In lieu of a bond, a public officer required to obtain a bond pursuant to this chapter may obtain an insurance policy in an amount not less than the amounts provided in section 64.8, 64.10, 64.13, or 64.15, as applicable.
   2.  An insurance policy obtained pursuant to this section must substantially comply with the conditions of section 64.2.
   3.  The reasonable expenses of an insurance policy obtained pursuant to this section in lieu of a bond, for which the reasonable expenses of such bond would be paid for by the county or township pursuant to section 64.11, 64.12, or 64.15, shall be paid by the county or township, as applicable.
   4.  The state of Iowa shall be the beneficiary of an insurance policy obtained pursuant to this section and the policy shall be for the use and benefit of any corporation, public or private, or person injured or sustaining loss, with a right of action in the name of the state for its or the corporation’s or person’s use.
   5.  An insurance policy obtained pursuant to this section shall be approved, filed, and recorded as provided in sections 64.19 through 64.24.
    Sec. 2.  Section 64.25, Code 2024, is amended to read as follows:
   64.25  Failure to give bond.
   1.  Action by any officer in an official capacity without giving bond when such bond is required shall constitute grounds for removal from office may be suspended from office until the officer gives a bond in compliance with this chapter.
   2.  Failure to give a bond in compliance with this chapter after a reasonable time following a suspension from office pursuant to subsection 1 constitutes grounds for removal from office.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to bonds and insurance policies for public officers. The bill allows a public officer that is required to obtain a bond pursuant to Code chapter 64 (official and private bonds) to instead obtain an insurance policy in an amount not less than the amount required of a bond for that officer. The bill requires that the terms of the insurance policy substantially comply with the terms required of an official bond. If the reasonable expenses of a bond would be paid for by a county or township, the bill requires the reasonable expenses of the insurance policy obtained in lieu of a bond to also be paid by that county or township. The state of Iowa shall be the beneficiary of an insurance policy obtained in lieu of a bond, and the bill requires the insurance policy to be approved, filed, and recorded in the same manner as a bond for a public officer.
   The bill changes the circumstances under which an officer can be removed from office for failure to give a bond. The bill allows an officer to be suspended from office after acting in an official capacity without giving a required bond until the officer gives an appropriate bond. If an officer who has been suspended from office for failure to give a bond does not give a bond after a reasonable time, the bill allows the officer to be removed from office.