Substitute House Bill 291 - Summary

• Enacts new section 3.061 to allow counties, townships, municipalities, school districts, community schools, and library districts to adopt a policy authorizing an "employee dishonesty and faithful performance of duty policy" (insurance or joint self-insurance pool coverage) instead of individual surety bonds for officers, employees, and appointees.

• Political subdivisions adopting such a policy must ensure coverage is in effect and documented before the officer or employee begins duties; failure to have coverage makes the office vacant.

• Coverage amounts under the policy must equal or exceed the maximum bond amount otherwise required by law, or if no amount is specified, an amount agreed upon by the legislative authority.

• Amends 44 existing code sections to add "except as otherwise provided in section 3.061" language, allowing subdivisions to use insurance policies as an alternative to traditional surety bonds for various county, township, municipal, school, and library officials.

• Titled the "Protect Local Treasuries Act."