HF 2522 (LSB 6096HV (2) 91)

HOUSE FILE 2522

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO HSB 660)

A BILL FOR

An Act relating to the required beneficiary and use of a public officer insurance policy, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 64.3, subsection 4, Code 2026, is amended by striking the subsection.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, certain public officers are required to obtain a bond that runs to the state 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 (Code section 64.18). In 2024, the general assembly enacted a provision allowing public officers to obtain an insurance policy in lieu of such a bond. The state is required to be the beneficiary of the insurance policy and the policy is required to 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 (Code section 64.3(4)). This bill strikes these requirements for an insurance policy obtained in lieu of a bond.
   The bill takes effect upon enactment.