HB 2156 -- Regulation of Bail Bond Agents

Sponsor:  Molendorp

This bill changes the laws regarding the regulation of bail bond
agents.  In its main provisions, the bill:

(1)  Prohibits an employee, contractor, or volunteer of a court
or law enforcement agency or any person employed at a jail from
being licensed as a bail bond agent.  This provision will not
apply to an attorney who holds an inactive license;

(2)  Requires a person licensed as an active bail bond agent to
hold the license for at least four years, instead of the current
two years, prior to owning or being an officer of a licensed
general bail bond agent;

(3)  Prohibits a corporation, partnership, association, or other
legal entity from applying for a general bail bond license unless
it is operating as a surety bail bond agent;

(4)  Increases the maximum fee which can be charged for a bail
bond license or license renewal from $150 to $300 every two years
for a biennial license.  The fee for filing a quarterly financial
statement cannot exceed $50 per filing;

(5)  Increases the initial basic training requirements from 24 to
40 hours;

(6)  Repeals the provision limiting the cost of the initial
training at $200 and the biennial continuing education at $150;

(7)  Prohibits a person who has had a final adjudication or plea
of guilty or nolo contendere in a criminal prosecution under any
state or federal law for a felony or crime involving moral
turpitude regardless of the imposition of sentence from making
application for examination or licensure.  A person licensed
prior to August 28, 2010, will be exempt from the provision;

(8)  Requires an applicant for licensure as a general bail bond
agent to show proof of serving four years, instead of the current
two years, as a bail bond agent;

(9)  Changes the asset requirements for general bail bond agents.
Currently, an applicant must possess liquid assets of at least
$10,000.  The bill specifies that an applicant must have at least
$10,000 in assets in a financial institution of the Department of
Insurance, Financial Institutions and Professional Registration's
choosing.  The department director may require an applicant to
have additional assets, but this amount cannot exceed $50,000
instead of the current $25,000;

(10)  Requires a general bail bond agent to provide the parties
with a receipt for any moneys paid and certain information
regarding the bond to all parties;

(11)  Requires the Department of Insurance, Financial
Institutions and Professional Registration to provide the
Department of Revenue with the name and Social Security number of
each applicant for licensure or renewal within one month of the
date the application is filed or at least one month prior to the
renewal.  The Department of Revenue must verify if the person is
delinquent on any state taxes or has failed to file a state
income tax return in the last three years.  If there is a
delinquency or failure to file, the applicant's or licensee's
license will be revoked within 90 days of the notice until the
department director verifies it has been remedied;

(12)  Requires a nonresident general bail bond agent to deposit
with the Department of Insurance, Financial Institutions and
Professional Registration $25,000 of assets for the security of
its outstanding surety bond obligations.  The department director
may require an agent to have additional assets under certain
circumstances, but the amount cannot exceed $50,000;

(13)  Allows a complaint to be filed with the Administrative
Hearing Commission against a licensee who has been convicted of a
felony or crime of moral turpitude at any time instead of the
current within the past 15 years.  A complaint may also be filed
for submitting a fraudulent, deceptive, or misleading financial
statement or statement of outstanding bonds;

(14)  Requires a property bail bond agent to file with the
initial application for licensure and annually with the March 31
quarterly financial statement a statement to the department to be
used as proof of security for bail bonds written in this state;

(15)  Requires a general bail bond agent to file within 30 days
of the end of each calendar quarter after his or her initial
licensure, or more often if so directed by the department, a
quarterly financial statement and a statement of outstanding
bonds within five days of the first day of each month.  Failure
to file will result in the immediate removal of the agent from
the preapproved list of general bail bond agents and is a cause
to file a complaint against the agent with the Administrative
Hearing Commission.  The department director must provide a list
of all preapproved general bail bond agents to the courts on at
least a monthly basis.  A general bail bond agent is preapproved
to write outstanding bonds totaling 15 times the agent's assets
less encumbrances.  If the agent's amount of outstanding bonds is
equal to or greater than that amount, the agent must be removed
from the list until the agent demonstrates to the department that
the outstanding bonds have been reduced below that amount or that
additional assets have been secured.  A general bail bond agent
acting as a property bail bond agent cannot write a bond
exceeding 50% of his or her secured assets less encumbrances
unless specifically approved by the court;

(16)  Specifies that anyone who intentionally provides
fraudulent, deceptive, or misleading financial statements or
outstanding bonds to the department or a court will be guilty of
a class D felony;

(17)  Requires the court to immediately issue an arrest warrant
for the defendant and enter a bond forfeiture in favor of the
state or municipality and against the general bail bond agent and
insurer when a defendant fails to appear at a required court
appearance.  The general bail bond agent must be allowed at least
90 days after the defendant's failure to appear before a
forfeiture will be considered final, unless the court grants an
extension;

(18)  Specifies the circumstances when a forfeiture can be set
aside;

(19)  Requires the department to notify the courts when a general
bail bond agent's authorization to write bail bonds has been
suspended and when it has been reinstated;

(20)  Authorizes the department director to issue civil penalties
and forfeitures for specified violations;

(21)  Repeals the $50 minimum charge for bonds of $1,000 or less;

(22)  Increases the maximum fee that can be charged for a surety
recovery agent license or license renewal from $150 to $300 for a
two-year license and increases the initial minimum training
requirements from 24 to 40 hours; and

(23)  Repeals the provision allowing a surety recovery agent to
apprehend a defendant without personal liability for false
imprisonment.

The bill becomes effective January 1, 2011.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:13 pm