The bill amends the Self-Insured Fidelity Bond Program in Arkansas, establishing the Self-Insured Fidelity Bond Trust Fund, which will be managed by the Governmental Bonding Board. Key changes include the definition of "fidelity bond," which now specifies coverage for "direct pecuniary loss" instead of "actual loss," and expands the coverage to include losses incurred from any fraudulent or dishonest acts committed by officials or employees of participating governmental entities. The bill also clarifies that the fidelity bond coverage will replace all statutorily required fidelity bonds for such acts, and if coverage ceases, the previous laws requiring fidelity bonds will be reinstated.

Additionally, the bill outlines the administration and disbursement of the fund, ensuring that no money will be appropriated for purposes other than bond claims and board expenses. It allows for the investment of fund assets and specifies that all income from these investments will be credited to the fund. The bill also emphasizes that funds appropriated from the Fidelity Bond Trust Fund will be considered as appropriated from the Self-Insured Fidelity Bond Trust Fund, ensuring clarity in financial management.

Statutes affected:
HB 1713: 19-5-954, 21-2-701, 21-2-702(5), 21-2-703, 21-2-704(a), 21-5-705(b), 21-5-709(a), 21-2-710(b)
Act 826: 19-5-954, 21-2-701, 21-2-702(5), 21-2-703, 21-2-704(a), 21-5-705(b), 21-5-709(a), 21-2-710(b)