HB194: relative to public bonds.

HB 194-FN - AS INTRODUCED

2019 SESSION

19-0170

05/01

HOUSE BILL 194-FN

AN ACT relative to public bonds.

SPONSORS: Rep. Marple, Merr. 24; Rep. Howard, Belk. 8; Rep. Spillane, Rock. 2

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill provides that inhabitants of the state shall have access to the bond covering a public servant or employee who has engaged in certain prohibited conduct.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0170

05/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT relative to public bonds.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Officials and Employees Bonds; When Required. Amend RSA 93-B:1 to read as follows:

93-B:1 When Required.

I. Officials and employees of all departments and agencies of the state shall be bonded by means of a blanket undertaking or undertakings from any duly authorized corporate surety, such blanket undertaking or undertakings to indemnify against losses through one or both of the following conditions:

[I.](a) Through the failure of the officers, clerks and employees covered thereunder faithfully to perform their duties or to account properly for all moneys or property received by virtue of their positions or employment, or

[II.](b) Through fraudulent or dishonest acts committed by the officers, clerks and employees covered thereunder.

II. The inhabitants of this state shall not be discriminated against when seeking damages against the state and shall have access to the bond covering the public servant or employee who has engaged in conduct described in subparagraph I(a) or (b).

2 Effective Date. This act shall take effect January 1, 2020.

LBAO

19-0170

10/31/18

HB 194-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to public bonds.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

$0

$0

$0

$0

Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

[ X ] General [ ] Education [ ] Highway [ ] Other

METHODOLOGY:

This bill allows inhabitants of this state to seek damages against the state and have access to the bond covering state officials and employees who fail to perform duties or commit fraudulent acts pursuant to RSA 93-B:1. The Department of Administrative Services (DAS) indicates the state's existing RSA 93-B performance bond is a contract between the state and the bond issuer for first party coverage. Both parties are subject to the terms and limits in the existing contract. Under this bill, the state would be required to amend the statute to require the purchase of a bond that would provide coverage to the inhabitants for injuries caused by any state official's failure to perform her or his duties or through fraudulent acts. The DAS has consulted with an insurance producer to obtain a cost estimate but such estimate is difficult to determine due to the extremely high cost associated with the expansive potential exposure the bond would be required to address.

AGENCIES CONTACTED:

Department of Administrative Services