House File 2398 - Reprinted HOUSE FILE 2398 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO HSB 597) (As Amended and Passed by the House February 27, 2024 ) A BILL FOR An Act relating to bonds and insurance policies for public 1 officers. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 HF 2398 (2) 90 ss/ns/md

H.F. 2398 Section 1. Section 63.11, Code 2024, is amended to read as 1 follows: 2 63.11 Oath on bond. 3 Every Except a secretary and treasurer under chapter 291, 4 every civil officer who is required to give bond shall take and 5 subscribe the oath provided for in section 63.10 , on the back 6 of the bond, or on a paper attached thereto, to be certified by 7 the officer administering it. 8 Sec. 2. NEW SECTION . 64.3 Insurance policy in lieu of bond. 9 1. In lieu of a bond, a public officer required to obtain a 10 bond pursuant to this chapter may obtain an insurance policy in 11 an amount not less than the amounts provided in section 64.8, 12 64.10, 64.13, or 64.15, as applicable. 13 2. An insurance policy obtained pursuant to this section 14 must substantially comply with the conditions of section 64.2. 15 3. The reasonable expenses of an insurance policy obtained 16 pursuant to this section in lieu of a bond, for which the 17 reasonable expenses of such bond would be paid for by the 18 county or township pursuant to section 64.11, 64.12, or 64.15, 19 shall be paid by the county or township, as applicable. 20 4. The state of Iowa shall be the beneficiary of an 21 insurance policy obtained pursuant to this section and the 22 policy shall be for the use and benefit of any corporation, 23 public or private, or person injured or sustaining loss, with 24 a right of action in the name of the state for its or the 25 corporation’s or person’s use. 26 5. An insurance policy obtained pursuant to this section 27 shall be approved, filed, and recorded as provided in sections 28 64.19 through 64.24. 29 Sec. 3. Section 64.25, Code 2024, is amended to read as 30 follows: 31 64.25 Failure to give bond. 32 1. Action by any officer in an official capacity without 33 giving bond when such bond is required shall constitute grounds 34 for removal from office may be suspended from office until the 35 -1- HF 2398 (2) 90 ss/ns/md 1/ 4

H.F. 2398 officer gives a bond in compliance with this chapter . 1 2. Failure to give a bond in compliance with this chapter 2 after a reasonable time following a suspension from office 3 pursuant to subsection 1 constitutes grounds for removal from 4 office. 5 Sec. 4. Section 260C.12, subsection 1, Code 2024, is amended 6 to read as follows: 7 1. The board of directors of the merged area shall organize 8 at the first regular meeting following the regular school 9 election or at a special meeting called by the secretary of the 10 board to organize the board in advance of the first regular 11 meeting after the canvass for the regular school election. 12 Organization of the board shall be effected by the election 13 of a president and other officers from the board membership 14 as board members determine. The board of directors shall 15 appoint a secretary and a treasurer who shall each give bond 16 or be covered by an insurance policy as prescribed in section 17 291.2 and who shall each receive the salary determined by 18 the board. The secretary and treasurer shall perform duties 19 under chapter 291 and additional duties the board of directors 20 deems necessary. However, the board may appoint one person to 21 serve as the secretary and treasurer. If one person serves 22 as the secretary and treasurer, only one bond or insurance 23 policy is necessary for that person. The frequency of meetings 24 other than organizational meetings shall be as determined by 25 the board of directors but the president or a majority of the 26 members may call a special meeting at any time. 27 Sec. 5. Section 279.3, subsection 2, Code 2024, is amended 28 to read as follows: 29 2. These officers shall be appointed from outside the 30 membership of the board and the appointment and qualification 31 shall be entered of record in the minutes of the secretary. 32 They shall qualify within ten days following appointment by 33 taking the oath of office in the manner required by section 34 277.28 and filing a bond or obtaining an insurance policy as 35 -2- HF 2398 (2) 90 ss/ns/md 2/ 4

H.F. 2398 required by section 291.2 and shall hold office until their 1 successors are appointed and qualified. 2 Sec. 6. Section 291.2, Code 2024, is amended to read as 3 follows: 4 291.2 Bonds or insurance of secretary and treasurer. 5 The secretary and treasurer, within ten days after 6 appointment and before entering upon the duties of the office, 7 shall execute to the school corporation a surety bond , or shall 8 be covered by an insurance policy, in an amount sufficient 9 to cover current operations as determined by the board. All 10 such bonds or insurance policies shall be continued to the 11 faithful discharge of the duties of the office. The amount and 12 sufficiency of all surety bonds or insurance policies shall be 13 determined and approved by the board and shall be filed with 14 the president. The cost of the surety bond or insurance policy 15 shall be paid by the school corporation. If a single person 16 serves as secretary and treasurer, pursuant to section 279.3 17 or 260C.12 , only one bond or insurance policy is necessary for 18 that person. The secretary and treasurer may give bond under 19 a single bond , or be covered by an insurance policy, covering 20 other employees of the district. 21 Sec. 7. Section 291.3, Code 2024, is amended to read as 22 follows: 23 291.3 Cost of bond or insurance policy . 24 If the bond or insurance policy of an association or 25 corporation as surety or insurance is furnished, the reasonable 26 cost of such bond or insurance policy may be paid by the school 27 corporation. 28 Sec. 8. Section 291.4, Code 2024, is amended to read as 29 follows: 30 291.4 Oath. 31 Each The secretary and treasurer shall take the oath 32 required of civil officers , which shall be endorsed upon the 33 bond, and shall complete the qualification within ten days. 34 Sec. 9. Section 291.5, Code 2024, is amended to read as 35 -3- HF 2398 (2) 90 ss/ns/md 3/ 4

H.F. 2398 follows: 1 291.5 Action on bond or insurance policy . 2 In case of a breach of the bond or insurance policy , the 3 president shall bring action thereon in the name of the school 4 corporation. 5 -4- HF 2398 (2) 90 ss/ns/md 4/ 4