HCS HB 2156 -- REGULATION OF BAIL BOND AGENTS (Molendorp)

COMMITTEE OF ORIGIN:  Committee on Insurance Policy

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

(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 for
licensure 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 from making application for examination or licensure.
A person licensed on January 1, 2011, 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)  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.  Currently, an applicant must possess
liquid assets of at least $10,000;

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

(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 Director of 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
unless 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 to the department or
a state court;

(14)  Requires a general bail bond agent to file with the initial
application for licensure and annually with the quarterly
financial statement of March 31 a statement with 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 the statements will result in the immediate removal of
the agent from the preapproved list of general bail bond agents
kept by the department 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 can demonstrate 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 bondsman 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
statements of outstanding bonds to the department or a court will
be guilty of a class D felony;

(17)  Requires the court to enter a bond forfeiture in favor of
the state or municipality and against the general bail bond agent
and insurer and immediately issue an arrest warrant for the
defendant 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 and when an insurer's
authorization to transact surety business in Missouri 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 provision allowing a licensed bail bond agent
to charge a $50 minimum premium for a bond 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 or to make apprehension by providing written
authority endorsed on a certified copy of the undertaking and
paying the lawful fees but authorizes a bail bond agent to
perform these activities.

The substitute becomes effective January 1, 2011.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2011, FY
2012, and FY 2013.  Estimated Income on Other State Funds of
$2,648 in FY 2011, $5,213 in FY 2012, and $4,889 in FY 2013.

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