Requires third-party disbursement service organization that contracts with local government unit or board of education to post bond against failure to meet obligations.

This bill requires third-party payment services that contract with local governments or school boards to post a bond with those entities. The bond amount and sureties must be approved by the Local Finance Board, and it is forfeited if the service fails to make payments or handle financial transactions, including tax deposits. It directly affects local governments, school boards, and the third-party payment organizations they work with. The legislation aims to protect public funds by ensuring these services meet their financial obligations.