AR HB1892

Transfers responsibility for notifying the Governmental Bonding Board of fidelity bond losses from the Legislative Auditor to the Legislative Auditor with Legislative Joint Auditing Committee approval when audit reports reflect unauthorized disbursements or unaccounted-for funds or property.

Requires the Legislative Auditor to request that appropriate prosecuting attorneys or the Attorney General assist in obtaining restitution for unauthorized disbursements or missing funds or property.

Authorizes the Legislative Auditor to request that city, county, or prosecuting attorneys or the Attorney General file civil lawsuits against public officials, officers, or employees on behalf of the state or political subdivisions when the board determines civil remedies should be pursued.

Requires the Governmental Bonding Board to determine whether civil remedies should be pursued to recover losses and to consider cost effectiveness when making such determinations.

Clarifies that when a loss is covered under the Self-Insured Fidelity Bond Program, the Insurance Commissioner authorizes timely bond loss payments from the Fidelity Bond Trust Fund to the participating governmental entity.