HB 1713 Summary

• Amends Arkansas Code § 19-5-954 and § 21-2-711 to establish the "Self-Insured Fidelity Bond Trust Fund" on the books of the Treasurer of State, Auditor of State, and Chief Fiscal Officer for administering bond claims and board expenses.

• Modifies the definition of "fidelity bond" in § 21-2-702(5)(A) to specify coverage for "actual direct pecuniary loss" resulting from fraudulent or dishonest acts by government officials or employees.

• Establishes coverage limits of $300,000 or the amount of the bond, whichever is lesser, for losses from fraudulent or dishonest acts by state, county, municipal, and school district officials and employees.

• Requires the Insurance Commissioner to authorize fidelity bond loss payments from the Self-Insured Fidelity Bond Trust Fund to participating governmental entities on a timely basis.

• Allows the Governmental Bonding Board to invest fund assets with State Board of Finance advice, with investment income credited to the fund and all deposited moneys exempt from deductions, taxes, levies, and assessments.