Three bills the Maine Legislature passed this spring are setting the scene for stricter rules governing the conduct of public officials in the state.
The legislation in focus relates to different districts and institutions in the state. Yet they all introduce a requirement for public officials to post a public official bond in relation to the diligent execution of their duties as a way of protecting the institutions they work at and tax-paying citizens against the consequences of misconduct.
Bonds for public officials aim to safeguard Maine residents from public officials potentially misusing their positions for personal financial gain or other illegal actions. They are often required for officials who manage finances but are used in other, more general cases, too. The bond acts as a guarantee of the honest and faithful performance of the public official by allowing the public agency to recoup taxpayer money lost when a public official violates the terms of his or her position, up to the penal sum of the bond.
One bill passed by the Legislature in June, LD 1231, creates the Southwest Harbor Water and Sewer District. It immediately sets the requirement that the treasurer for the board of trustees post a surety bond, whose amount would be decided by the board.
The next bill, LD 1223, also passed in June, revises the charter for the Kennebunk Sewer District. It introduces the requirement that the treasurer for the board of trustees of the district post a public official bond in an amount set by the board.
Finally, LD 1277 is an act that establishes the Magnet School for Marine Science, Technology, Transportation and Engineering in Maine. It authorizes the board of trustees to require the officers, trustees, employees and agents dealing with securities and funds to furnish a public official bond. They have to provide a $100,000 bond per person, but blanket bonds also are permitted.
In all three cases, the new legislation means public officials have to obtain a bond before they are sworn into their positions. The bonding process entails a detailed investigation of the person by a surety provider that will then underwrite the bond. If it assesses the official as trustworthy, it provides the financial guarantee for her position.
While the new rules affect public officials only at three specific institutions, they are a sign the state aims to exert more control and limit problematic situations involving issues of public importance. This is especially relevant in the light of recent events in Maine, such as the LePage-Eves scandal.
The bonding requirement is already in force at many state and local organizations and helps their smooth operation. As protection of taxpayers is the main goal of the public official bonds, it’s only normal that institutions that entrust the handling of public monies or important decisions to officials apply a bonding requirement.
While the bonds cannot prevent potential misuses, they guarantee the interests of the public will be safeguarded at all times. The compensation provided by the bond coverage can then reimburse any loss or damage caused by unprofessional actions of officials.
Public official bonds are a type of surety bonds whose purpose is to deliver a higher level of security for the state and its residents.
In essence, such a surety bond is a contract between the public official, the state of Maine and the surety bond company that provides it. By obtaining a bond, the public official agrees to follow the rules that govern his or her position — or to face financial penalties in the form of claims if this is not the case.
While it’s often the public institution that pays for the bonding, it’s up to the official to pay the costs in case a claim is made against him or her. Furthermore, a public official can be held accountable for his or her actions even after the official has stopped working in the public position.
Todd Bryant is the president and founder of Bryant Surety Bonds based in Doylestown, Pennsylvania. He is a surety bonds expert with years of experience in helping business owners get bonded and start their businesses.