7-86-119 - Surety bond. - Tennessee Statutes

7-86-119. Surety bond.

(a)  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 of Tennessee 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.

(b)  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 the provisions of this section.

(c)  (1)  The amount of such required bond shall be a reasonable amount as determined by the amount of public funds received, expended, or the amount of such bond shall be reasonable to protect the public from breach of the condition of faithful discharge of the duties of such office or position, when the amount of public funds to be received, or expended, or to which that person will have access is considered.

     (2)  Effective July 1, 1994, the minimum amount of such required bond shall be determined from the amount of revenues handled by the respective emergency communications district during the last audit approved by the comptroller of the treasury. The minimum amount of the bond shall be based on revenues as follows:

          (A)  Less than fifty thousand dollars ($50,000) a base bond of five thousand dollars ($5,000);

          (B)  From fifty thousand dollars ($50,000) to five hundred thousand dollars ($500,000) an amount equal to ten percent (10%) of the revenues handled by the district;

          (C)  Five percent (5%) of the excess of five hundred thousand dollars ($500,000) to one million dollars ($1,000,000) shall be added;

          (D)  Three percent (3%) of the excess of one million dollars ($1,000,000) to three million dollars ($3,000,000) shall be added;

          (E)  Two percent (2%) of the excess of three million dollars ($3,000,000) shall be added; and

          (F)  The amounts indicated in subdivisions (2)(A)-(E) shall be cumulative.

(d)  All such official bonds shall be signed by authorized individuals of a corporate surety, and such corporation shall be duly licensed to do business in the state of Tennessee as a surety.

(e)  The official bonds required under this section are hereby required to be transmitted to the comptroller of the treasury, to be filed in the comptroller of the treasury's office, and be receipted for by the comptroller of the treasury.

(f)  The respective emergency communications district shall pay the premiums for such bonds.

[Acts 1992, ch. 891, § 1; 1993, ch. 479, § 5.]