House Bill 491 makes significant changes to the potential liability of school district and educational service center treasurers for the loss of public funds.
The Act limits a treasurer’s liability so long as the treasurer performed all official duties with reasonable care. The Act still permits treasurer liability where the loss of public funds results from the treasurer’s negligence and/or other wrongful act. Additionally, the Act expressly prohibits finding the loss of public funds as a violation of the treasurer’s official duties absent the treasurer’s negligence and/or other wrongful acts.
House Bill 491 takes effect on March 19, 2019.
The official legislation summary of House Bill 491 can be found here.
Authors: Matthew John Markling and the McGown & Markling Team.
Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.