Tennessee § 7-86-119 - Surety bond.

§ 7-86-119. Surety bond.

Any board member, executive committee member, employee, officer, or any other authorized person of an emergency communications district, who receives public funds, has authority to make expenditures from public funds, or has access to any public funds is hereby required to give bond made payable to the state with such sureties as provided in this section. Such bond is to be conditioned in all cases in which a different condition is not prescribed, upon the faithful discharge of the duties of such office, employment or other authorized activity in which such person is engaged during the time such person continues in the duties, or in the discharge of any part of such duties. An emergency communications district may purchase, in lieu of the surety bonds required by subdivision (a)(1), fidelity bonds to cover any losses from breach of the condition of faithful discharge of the duties of any board member, executive committee member, employee, officer, or any other authorized person of an emergency communications district who receives public funds, has authority to make expenditures from public funds, or has access to any public funds. A fidelity bond purchased pursuant to this subdivision (a)(2) shall provide coverage for government crime and employee dishonesty that insures the lawful performance by officials and their employees of their fiduciary duties and responsibilities. A fidelity bond purchased pursuant to this subdivision (a)(2) must be purchased from a corporation licensed to do business in this state pursuant to title 56, chapter 2. A certificate evidencing the persons covered by the fidelity bond, the amount of coverage maintained, and the type of coverage provided shall be filed in the register's office for the county in which the emergency communications district is located. A certificate filed pursuant to subdivision (a)(2)(D) shall satisfy the requirement for the filing of official bonds under subsection (e). Provisions for bonds of all state and county officers set forth in title 8, chapter 19, shall also govern the bonds of all persons covered under this section, so far as the provisions of title 8, chapter 19, are not inconsistent with this section. The minimum amount of such required bond shall be determined from the amount of revenues handled by the respective emergency communications district as reported in the last audit approved by the comptroller of the treasury. The minimum amount of the bond shall be based on revenues as follows: Four percent (4%) of the revenues up to three million dollars ($3,000,000); and Two percent (2%) of the revenues in excess of three million dollars ($3,000,000) shall be added. The amounts indicated in subdivisions (c)(1)(A) and (B) shall be cumulative. Surety bonds purchased pursuant to this section shall be signed by authorized individuals of a corporate surety, and such corporation shall be duly licensed to do business in the state as a surety. The official bonds required under this section are hereby required to be recorded in the office of the register of deeds where the office of the emergency communications district is located and transmitted to the office of the county clerk in the same county for safekeeping. The respective emergency communications district shall pay the premiums for such bonds. Acts 1992, ch. 891, § 1; 1993, ch. 479, § 5; 2013, ch. 315, §§ 21, 22; 2017, ch. 418, §§ 1-3. Compiler's Notes. Acts 2013, ch. 315, § 31 provided that the act, which amended subdivision (c)(2) and subsection (e), shall apply to the renewal or obtaining an official bond for any bonding after April 29, 2013. Amendments. The 2017 amendment added (a)(2); deleted former (c)(1); redesignated the introductory language of former (c)(2)(A) as the introductory language of present (c)(1); in the present introductory language of (c)(1), substituted “The” for “Effective July 1, 2013, the”; redesignated former (c)(2)(A)(i) and (c)(2)(A)(ii) as present (c)(1)(A) and (c)(1)(B), respectively; in present (c)(1)(A), substituted “of the revenues in excess of” for “of the excess over”; redesignated former (c)(2)(B) as present (c)(2); in present (c)(2), substituted “subdivisions (c)(1)(A) and (B)” for “subdivisions (2)(A)(i) and (ii)”; and, in (d), substituted “Surety bonds purchased pursuant to this section” for “All such official bonds”. Effective Dates. Acts 2017, ch. 418, § 4. May 18, 2017.