(a) Except as provided in subsections (b), (c),
and (d), the following individuals shall file and maintain in place an
individual surety bond during each year that the individual serves as an
officer, employee, or contractor:
(1) City judges, controllers, clerks, and clerk-treasurers.
(2) Town judges, town controllers, and clerk-treasurers.
(3) Auditors, treasurers, recorders, surveyors, sheriffs, coroners,
assessors, and clerks.
(4) Township trustees.
(5) Those employees directed to file an individual bond by the
fiscal body of a city, town, or county.
(6) Township assessors (if any).
(7) Individuals:
(A) who are employees or contractors of a city, town, county, or
township; and
(B) whose official duties include receiving, processing,
depositing, disbursing, or otherwise having access to funds:
(i) that belong to the federal government, the state, a political
subdivision, or another governmental entity; and
(ii) in an amount that exceeds five thousand dollars ($5,000)
per year.
(b) The fiscal body of a city, town, county, or township may by
ordinance authorize the purchase of a blanket bond that:
(1) is endorsed to include faithful performance to cover the
faithful performance of; and
(2) includes aggregate coverage sufficient to provide coverage
amounts specified for;
all employees, commission members, and persons acting on behalf of
the local government unit, including the officers, employees, and
contractors described in subsection (a) who are required to file a bond
under this chapter.
(c) The fiscal body of a city, town, or county may by ordinance or
the fiscal body of a township may by resolution authorize the purchase
of a name or position schedule bond that:
(1) names each individual or each position covered under the
schedule bond;
(2) is endorsed to include faithful performance to cover the
faithful performance of all officers, employees, and contractors
described in subsection (a) who are required to file a bond under
this chapter; and
(3) includes aggregate coverage sufficient to provide coverage
amounts specified for all officers, employees, and contractors
described in subsection (a) who are required to file a bond under
this chapter.
(d) The fiscal body of a city, town, county, or township may by
ordinance (or for a township, by resolution) authorize the purchase of
a crime insurance policy that:
(1) provides coverage for criminal acts or omissions committed
by;
(2) is endorsed to include faithful performance to cover the
faithful performance of; and
(3) includes aggregate coverage sufficient to provide coverage
amounts specified for;
all officers, employees, contractors, commission members, and persons
acting on behalf of the local government unit and required to file a
bond under this chapter. For the sole purpose of recovering public
funds on behalf of a local government unit, the state is considered to be
an additional named insured on all crime insurance policies and
endorsements obtained under this subsection.
(e) Except as provided in subsections (k) and (l), the fiscal bodies
of the respective units shall fix the amount of the bond of city
controllers, city clerk-treasurers, town clerk-treasurers, Barrett Law
fund custodians, county treasurers, county sheriffs, circuit court clerks,
township trustees, and conservancy district financial clerks as follows:
(1) The amount must equal thirty thousand dollars ($30,000) for
each one million dollars ($1,000,000) of receipts of the officer's
office during the last complete fiscal year before the purchase of
the bond, subject to subdivision (2).
(2) The amount may not be less than thirty thousand dollars
($30,000) nor more than three hundred thousand dollars
($300,000) unless the fiscal body approves a greater amount for
the officer or employee.
County auditors shall file bonds in amounts of not less than thirty
thousand dollars ($30,000), as fixed by the fiscal body of the county.
(f) The amount of the bond of a person who is not specified in
subsection (e) and is required to file an individual bond shall be fixed
by the fiscal body of the unit as follows:
(1) If the person is not described in subsection (a)(7), at not less
than fifteen thousand dollars ($15,000).
(2) If the person is described in subsection (a)(7), at not less than
five thousand dollars ($5,000).
(g) Except as provided in subsection (m), a controller of a solid
waste management district established under IC 13-21 or IC 13-9.5
(before its repeal) shall file an individual surety bond in an amount:
(1) fixed by the board of directors of the solid waste management
district; and
(2) that is at least thirty thousand dollars ($30,000).
(h) Except as provided under subsection (g), a person who is
required to file an individual surety bond by the board of directors of
a solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal) shall file a bond in an amount fixed by the
board of directors.
(i) In 1982 and every four (4) years after that, the state examiner
shall review the bond amounts fixed under this section and report in an
electronic format under IC 5-14-6 to the general assembly whether
changes are necessary to ensure adequate and economical coverage.
(j) The commissioner of insurance may prescribe the form of the
bonds or crime insurance policies required by this section, in
consultation with the state board of accounts and the Indiana archives
and records administration under IC 5-15-5.1-6. However, a bond or
crime insurance policy that does not conform to a form prescribed
under this subsection may be used to meet the requirements of this
chapter.
(k) Notwithstanding subsection (e), the state board of accounts may
fix the amount of the bond for a city controller, city clerk-treasurer,
town clerk-treasurer, town controller, Barrett Law fund custodian,
county treasurer, county sheriff, circuit court clerk, township trustee,
or conservancy district financial clerk at an amount that exceeds thirty
thousand dollars ($30,000) for each one million dollars ($1,000,000)
of receipts of the officer's office during the last complete fiscal year
before the purchase of the bond. However, the bond amount may not
exceed three hundred thousand dollars ($300,000). An increased bond
amount may be established under this subsection only if the state
examiner issues a report under IC 5-11-5-1 that includes a finding that
the officer engaged in malfeasance, misfeasance, or nonfeasance that
resulted in the misappropriation of, diversion of, or inability to account
for public funds.
(l) Notwithstanding subsection (f), the state board of accounts may
fix the amount of the bond for any person who is described in:
(1) subsection (f)(1) and is required to file an individual bond at
an amount that exceeds fifteen thousand dollars ($15,000); or
(2) subsection (f)(2) and is required to file an individual bond at
an amount that exceeds five thousand dollars ($5,000).
An increased bond amount may be established under this subsection
only if the state examiner issues a report under IC 5-11-5-1 that
includes a finding that the person engaged in malfeasance,
misfeasance, or nonfeasance that resulted in the misappropriation of,
diversion of, or inability to account for public funds.
(m) Notwithstanding subsection (g), the state board of accounts may
fix the amount of the bond for a controller of a solid waste management
district established under IC 13-21 or IC 13-9.5 (before its repeal) at an
amount that exceeds thirty thousand dollars ($30,000). An increased
bond amount may be established under this subsection only if the state
examiner issues a report under IC 5-11-5-1 that includes a finding that
the controller engaged in malfeasance, misfeasance, or nonfeasance
that resulted in the misappropriation of, diversion of, or inability to
account for public funds.
(n) The following apply to a bond that is filed to comply with this
section:
(1) Each bond must provide coverage in the amount required for
the individual covered under the bond for one (1) year (the policy
year) commencing on the first day of the:
(A) calendar year;
(B) fiscal year of the political subdivision or governmental unit;
or
(C) individual's service in the office or position for which a
bond is required.
(2) A continuous bond may be used to satisfy the requirement of
subdivision (1) if the bond:
(A) is renewed on an annual basis for the period during which
the individual serves in the office or position for which a bond
is required; and
(B) provides coverage in the amount required for the individual
covered under the bond for each policy year.
However, any claim under a continuous bond used under this
subdivision must be brought not later than six (6) years after the
occurrence giving rise to the claim.
(3) The maximum aggregate liability of the surety or insurer for
a single policy year is the penal sum of the bond. In the case of a
continuous bond, the maximum aggregate liability of the surety
or insurer for the entire term that the bond is in effect is the penal
sum of the bond for the current term of the bond and the penal
sums of the bond for the five (5) immediately preceding years.
As added by Acts 1981, P.L.47, SEC.3. Amended by
P.L.54-1989, SEC.1; P.L.49-1989, SEC.5; P.L.33-1992, SEC.2;
P.L.49-1995, SEC.4; P.L.1-1996, SEC.36; P.L.28-2004, SEC.56;
P.L.146-2008, SEC.34; P.L.176-2009, SEC.1; P.L.117-2011, SEC.1;
P.L.171-2015, SEC.6; P.L.230-2015, SEC.2; P.L.60-2016, SEC.1;
P.L.188-2016, SEC.3; P.L.56-2022, SEC.1.