Amends TCA Title 8, Chapter 19; Title 13, Chapter 14 and Title 64, Chapter 7.

Under present law, a board member, executive committee member, employee officer, or any other authorized person of a development district, who receives public funds, has authority to make expenditures from public funds, or has access to any public funds, must give bond to be made payable to the state, conditioned upon the faithful discharge of the duties of such office, employment or other authorized activity in which such person is engaged. This bill adds that a development district may obtain, in lieu of the surety bond, a policy of insurance or an agreement with a pool established by two or more governmental entities pursuant to the present law provisions governing pooled risk management or an entity established pursuant to those provisions for the administration of such agreement, which provides government crime coverage, employee dishonesty insurance coverage, or equivalent coverage that insures the lawful performance by officials and their employees of their fiduciary duties and responsibilities. Such a policy or agreement must have limits of not less than $400,000 per occurrence. A policy or agreement satisfying the requirements of this bill will be deemed to be a blanket official bond for each official or office identified in the policy or agreement. The officials who may be covered under the policy or agreement include board members, policy council members, employees, officers, and other authorized persons of a development district who handle public funds pursuant to the Development District Act. A copy of the policy or agreement evidencing the persons covered, the amount of coverage maintained, and the type of coverage provided must be filed in the office of the register of deeds where the office of the development district is located. The policy or agreement will satisfy the requirement for the filing of official bonds. Under present law governing the Greater Nashville Regional Council, a regional council member, executive committee member, employee, officer or any other authorized person of the regional council who receives public funds, has authority to make expenditures from public funds or has access to any public funds must give bond to be made payable to the state with such sureties as provided in the laws governing regional authorities. This bill rewrites these provisions to instead provide that a regional council member, executive committee member, employee, officer or any other authorized person of the regional council who receives public funds, has authority to make expenditures from public funds or has access to any public funds must give bond or obtain an insurance policy in accordance with the above-described provisions of this bill.