(1) With the advice of the head of each agency, and taking into consideration employee duties and responsibilities, the administrator shall designate individually or by class the employees required to give official bond to the state and the amount of the bond required for each individual or class.
(2) If some other law sets forth an amount in which an employee is to be bonded, the administrator shall procure a bond in at least the amount set forth in such law, but may require a bond in a greater amount than as set forth in such law if he determines, in accordance with the procedures set forth in subsection (1) above, that it would be in the best interest of the state to require a bond in a greater amount.
(3) The premium on the official surety bonds procured by the administrator in accordance with subsections (1) and (2) above shall be paid from funds appropriated or available for the employer or agency in the manner prescribed in section 41-3503, Idaho Code.
(4) The administrator shall procure all official bonds for employees, and shall, by negotiations or otherwise, endeavor to purchase the best coverage which can be obtained for the least cost.