A recently enacted bill in Connecticut establishes the Paid Family and Medical Leave Insurance Authority in the state. The purpose of the authority is to administer a program which will provide as much as 12 weeks of family and medical leave compensation during a year to employees covered under it.
As part of the functioning of this authority and as a form of guarantee to the public, officers and members of the board that handle funds or sign checks will need to post a Connecticut public official bond.
For more details regarding the surety bond requirement for board members, keep reading!
Connecticut Public Act No. 19-25
Substitute Senate Bill 1, now known as Public Act No. 19-25, was passed in late June. With its enactment into law, the bill establishes the Paid Family and Medical Leave Insurance Authority and the program it will administer.
For the administering of the program, the new law also creates the Family and Medical Leave Insurance Authority Board. This entity will serve a large variety of purposes to ensure the functioning of the authority and its program.
Financial security requirement
Among other things, officers and members of the board that have been authorized by a resolution of the board to handle funds or sign checks for the program must comply with specific financial security requirements. Within 10 days of the passing of such a resolution, such officers and members must obtain a $50,000 surety bond.
Alternatively, instead of individual members posting bonds, the chairperson of the board can obtain a blanket position bond. That bond must cover the executive director and all members of the board, other employees and authorized officers in an amount of $50,000.
The purpose of the bond is to guarantee that all bonded individuals will faithfully perform their duties as described in the Act.
How to Get a Connecticut Public Official Bond
To get bonded, you will need to pay a bond premium. This premium, or cost of your bond, is not the same as its amount, or penal sum.
The cost is equal to a part of that amount and is based on your personal credit score and certain other financials. Applicants with high credit scores are typically offered a lower rate on their bond, whereas those with lower scores must pay a higher rate.
You can get a free quote on your bond, along with more details about the bonding process by completing our bond form. Simply click on the banner below and complete the form. We will contact you shortly with your quote.