During a recent government meeting, the committee addressed significant concerns regarding the bonding requirements for elected officials in Utah. Johnny Miller, CEO of the Utah County Indemnity Pool, participated virtually to shed light on the challenges posed by current state statutes.

Miller emphasized that the bonding requirements apply to all public officials, including legislators, and highlighted a critical issue: no surety companies are willing to issue bonds to Utah public officials due to statutory limitations. He explained that these limitations stem from a misunderstanding of the nature of bonds, which are not insurance policies. This confusion has led to a reliance on crime insurance policies as substitutes for bonds, which do not provide the same protections.

A key point raised by Miller was the Governmental Immunity Act, which prevents sureties from being indemnified for losses incurred due to a public official's actions. This lack of indemnification assurance is a primary reason why sureties are hesitant to issue bonds. Additionally, Miller pointed out that recent statutory changes have created requirements for bonds to cover claims that they are not designed to address, further complicating the situation.

The committee's discussions underscored the need for legislative review and potential reform of the bonding requirements to ensure that public officials can obtain the necessary bonds while protecting public entities from financial losses.