MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Finance

By: Senator(s) Frazier

AN ACT TO CODIFY SECTION 37-101-18, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE HEADS OF THE VARIOUS STATE INSTITUTIONS OF HIGHER LEARNING, THE COMMISSIONER OF HIGHER EDUCATION, AND ANY OTHER UNIVERSITY EMPLOYEE WHO IS A CUSTODIAN OF FUNDS OR PROPERTY OFFICER SHALL BE COVERED BY AN OFFICIAL BOND NOT EXCEEDING $100,000.00 PER INDIVIDUAL; TO PROVIDE THAT THE BOARD MAY SELF-FUND SUCH COVERAGE; TO AUTHORIZE THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING TO PROVIDE AN ERRORS AND OMISSIONS INSURANCE POLICY IN LIEU OF SUCH OFFICIAL BOND;; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following provision shall be codified as Section 37-101-18, Mississippi Code of 1972:

37-101-18. (1) The Board of Trustees of State Institutions of Higher Learning shall provide an official bond, as defined in Section 25-1-15, Mississippi Code of 1972, for the heads of the various state institutions of higher learning, Commissioner of Higher Education, and any other employee of the state institutions of higher learning that the institution designates as a custodian of funds or a property officer or is otherwise deemed necessary or proper by the board in an amount not more than One Hundred Thousand Dollars ($100,000.00) per individual with one or more surety companies authorized to do business in the State of Mississippi. The official bond shall guarantee, but not be limited to, the faithful performance of duties by the covered individuals and the proper accounting of all public property and funds for which the individual is responsible. The board is authorized to pay all premiums for such bonds from any available funds of the respective institutions. The Board of Trustees of State Institutions of Higher Learning is authorized to self-fund the liability to be covered by the official bond provided under this paragraph. The board shall have the authority to administer and coordinate the self-funded program and is authorized to pay any and all costs of self-funding the aforementioned liabilities from funds available to the respective institutions. The board shall notify the State Auditor should it elect to self-fund the aforementioned liabilities.

In the event the Board of Trustees of State Institutions of Higher Learning determines it has become impracticable to either procure an official bond from surety companies authorized to do business in the State of Mississippi, or to self-fund the liability described in this paragraph, then the Board of Trustees of State Institutions of Higher Learning may provide coverage as set forth in Section 2 below.

(2) The Board of State Institutions of Higher Learning may provide an official bond, an errors and omissions policy which shall include, but not be limited to, coverage to ensure full compliance with all terms and provisions as set forth in Section 29-9-1 et seq., Mississippi Code of 1972, for the heads of the various state institutions of higher learning, Commissioner of Higher Education, and any other employee of the state institutions of higher learning that the institution designates as custodian of funds or a property officer or is otherwise deemed necessary or proper by the board with one or more insurance companies authorized to do business in the State of Mississippi. The board is authorized to pay all premiums for such insurance from any available funds of the respective institutions. The Board of Trustees of State Institutions of Higher Learning is authorized to self-fund the liability to be covered by the insurance provided under this paragraph. The board shall have the authority to administer and coordinate the self-funded program and is authorized to pay any and all costs of self-funding the aforementioned liabilities from funds available to the respective institutions. The board shall notify the State Auditor should it elect to self-fund the aforementioned liabilities.

(3) The board may enter into any contracts with accountants, actuaries, and other persons from the private sector whose skills are necessary to carry out the purposes of this section.

SECTION 2. This act shall take effect and be in force from and after its passage.