UtahH.B. 642025 General SessionHouse

Public Official Bonding Amendments

Sponsored By: James A. Dunnigan (Republican)

Signed by Governor

CountiesEducationK-12 EducationMunicipalitiesPolitical Subdivisions (Local Issues)Government Operations (State Issues)State Officers and EmployeesConstitutional OfficersCounty OfficersLocal Government EmployeesMunicipal OfficersSchool DistrictsState Treasurer

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 1 benefits, 2 costs, 7 mixed.

County assessors face penalties and repayment

County assessors must obtain duty-related crime insurance in amounts set by county legislative bodies. An assessor owes the county $1,000 for failing to complete and deliver the assessment book on time or send required information. The county can deduct that penalty from salary. With a written demand from the commission or county legislative body and proper evidence, county attorneys must sue over willful assessment failures. If trial establishes the property's value, the assessor owes the resulting tax shortfall.

Utah pays treasurer and deputy premiums

Utah's state treasurer must get crime insurance within 30 days of taking office. The State Money Management Council sets the coverage amount, and the state pays the premium. The state also pays required crime-insurance premiums for deputies of state officers. The law does not state the premium amounts.

Insurers gain recourse against public employers

The law removes provisions barring insurers from seeking repayment or cost-sharing from government entities or employees for covered losses. It also removes a similar bar for certain faithful-performance bond providers. That change concerns covered acts for which the government must provide a defense or cover liability. Removing these bars does not guarantee recovery; claims still depend on applicable law.

Public bodies gain insurance recovery routes

Utah, its agencies, and public corporations can bring officer-misconduct or related crime-insurance claims within six years after an officer leaves office. After an outside county attorney confirms an unauthorized county payment or warrant was paid, recovery can target payees or officers. Recovery can also come from applicable crime insurance, replacing the stated route against the officer's bond provider. County attorneys can pursue these remedies without a county legislative body's order and seek court orders blocking unauthorized payments.

Public officers switch bonds for crime insurance

Beginning May 7, 2025, approved crime insurance replaces required public-officer misconduct bonds; authorized officials can require yearly reviews and updates. Policies name the relevant government or school board when no beneficiary is specified and cover later-added duties where possible. Intentional failure to obtain or maintain coverage is misconduct in office and can lead to removal proceedings. Canceled bond protection no longer automatically makes an office vacant. The separate vacancy rule for failing to qualify within 60 days remains.

Public treasurers face insurance and reporting rules

Public treasurers covered by law or council rule must obtain crime insurance. The State Money Management Council sets minimum coverage based on the public funds normally under each treasurer's control. The council also sets required coverage for the authority financial officer covered by this law. Public treasurers must report deposits, investments, and permitted interest-rate contracts by January 31 and July 31. These twice-yearly reports are public.

Authorities and districts pay trustee insurance

The authority covered by this requirement must carry $25,000 in crime insurance per board member and $50,000 for its executive director. It pays premiums, uses an insurer authorized in Utah, and files proof with the State Treasurer. Special district trustees must also obtain duty-related crime insurance, with coverage amounts set by their boards. Their districts pay the premiums. Water conservancy district trustees also need duty-related crime insurance at district expense instead of corporate surety bonds.

Councils and boards can require staff insurance

The councils and commissions covered by these changes can require duty-related crime insurance for administrators or employees instead of surety bonds. They choose whether to require coverage, set its amount, and pay premiums. Special district boards can also require crime insurance for officers and employees who handle district funds. Those boards set the coverage amount, replacing their authority to require individual or blanket surety bonds.

Counties pay for required officer insurance

County officials need crime insurance before starting duties; counties pay premiums, allow group policies, and keep proof with the county clerk. County legislative bodies set coverage amounts, except the State Money Management Council sets county treasurer amounts. Counties must also insure legislative body members; deputies and assistants are included when required by the county legislative body. An elected officer holding consolidated offices needs coverage for each office. A multicounty prosecutor's agreement sets coverage, premium payment, and filing rules. Counties with taxable value over $500 million that appoint purchasing agents must insure them before work begins, at county-set amounts.

Municipalities pay for officer crime insurance

Municipal officers must have crime insurance before performing their duties. Municipal governing bodies set coverage amounts, except the State Money Management Council sets municipal treasurer amounts. Municipal funds pay premiums, group coverage is allowed, and the recorder maintains proof. Cities also have authority to require duty-related crime insurance for elected or appointed officers and agents instead of bonds.

Sponsors & Cosponsors

Sponsor

  • James A. Dunnigan

    Republican • House

Cosponsors

  • Ronald M. Winterton

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 122 • No: 0

Senate vote • 2/14/2025

Senate/ passed 3rd reading

Yes: 21 • No: 0

Senate vote • 2/13/2025

Senate/ passed 2nd reading

Yes: 27 • No: 0

Senate vote • 2/3/2025

Senate Comm - Favorable Recommendation

Yes: 6 • No: 0

House vote • 1/28/2025

House/ passed 3rd reading

Yes: 68 • No: 0

House vote • 1/28/2025

House/ uncircled

Yes: 0 • No: 0

House vote • 1/24/2025

House/ circled

Yes: 0 • No: 0

House vote • Unknown

House/ uncircled

Yes: 0 • No: 0

House vote • Unknown

House/ circled

Yes: 0 • No: 0

Actions Timeline

  1. Governor Signed

    3/19/2025
  2. House/ to Governor

    3/12/2025House
  3. House/ received enrolled bill from Printing

    3/12/2025House
  4. House/ enrolled bill to Printing

    3/12/2025House
  5. Enrolled Bill Returned to House or Senate

    3/12/2025
  6. Draft of Enrolled Bill Prepared

    2/19/2025
  7. Bill Received from House for Enrolling

    2/19/2025
  8. House/ signed by Speaker/ sent for enrolling

    2/18/2025House
  9. House/ received from Senate

    2/18/2025House
  10. Senate/ to House

    2/14/2025Senate
  11. Senate/ signed by President/ returned to House

    2/14/2025Senate
  12. Senate/ passed 3rd reading

    2/14/2025Senate
  13. Senate/ 3rd reading

    2/14/2025Senate
  14. Senate/ passed 2nd reading

    2/13/2025Senate
  15. Senate/ 2nd reading

    2/13/2025Senate
  16. Senate/ placed on 2nd Reading Calendar

    2/4/2025Senate
  17. Senate/ committee report favorable

    2/4/2025Senate
  18. Senate Comm - Favorable Recommendation

    2/3/2025Senate
  19. Senate/ to standing committee

    1/30/2025Senate
  20. Senate/ 1st reading (Introduced)

    1/29/2025Senate
  21. Senate/ received from House

    1/28/2025Senate
  22. House/ to Senate

    1/28/2025House
  23. House/ passed 3rd reading

    1/28/2025House
  24. House/ uncircled

    1/28/2025House
  25. House/ circled

    1/24/2025House

Bill Text

  • Enrolled

    3/12/2025

  • Introduced

    12/23/2024

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