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First Substitute H.B. 122
6 LONG TITLE
7 General Description:
8 This bill enacts the Joint Bail Bond Commission Act and describes its duties. This bill
9 allocates a portion of licensing fee to fund the commission.
10 Highlighted Provisions:
11 This bill:
12 . enacts the Joint Bail Bond Commission Act which creates the commission within
13 the Department of Insurance and sets out the duties of the commission and the
15 . requires the commission to report to the Legislature before November 30, 2005; and
16 . provides a repeal date for commission funding.
17 Monies Appropriated in this Bill:
19 Other Special Clauses:
21 Utah Code Sections Affected:
23 31A-35-401, as last amended by Chapter 298, Laws of Utah 2003
24 63-55b-131, as last amended by Chapters 2 and 37, Laws of Utah 2004
26 31A-2-401, Utah Code Annotated 1953
27 31A-2-402, Utah Code Annotated 1953
28 31A-2-403, Utah Code Annotated 1953
29 31A-2-404, Utah Code Annotated 1953
30 31A-2-405, Utah Code Annotated 1953
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 31A-2-401 is enacted to read:
35 31A-2-401. Title.
36 This part is known as the "Joint Bail Bond Commission Act."
37 Section 2. Section 31A-2-402 is enacted to read:
38 31A-2-402. Definitions.
39 As used in this part:
40 (1) "Commission" means the Joint Bail Bond Commission created in Section
41 31A-2-403 .
42 (2) "Commissioner" or "insurance commissioner" means the insurance commissioner
43 under Section 31A-2-102 .
44 (3) "Department" means the Utah Insurance Department created in Title 31A,
45 Insurance Code.
46 (4) "Utah Association of Professional Bondsmen and Agents" means the professional
47 association of bail bond agencies and bail bond producers.
48 Section 3. Section 31A-2-403 is enacted to read:
49 31A-2-403. Joint Bail Bond Commission created.
50 (1) There is created within the department the Joint Bail Bond Commission comprised
51 of ten members:
52 (a) three members elected by the Utah Association of Professional Bondsmen and
54 (b) one member appointed by the Utah Sheriff's Association;
55 (c) one member appointed by the Administrative Office of the Courts;
56 (d) one member appointed by the Statewide Association of Public Attorneys;
57 (e) one member of the general public appointed by the department;
58 (f) the commissioner of public safety or his designee;
59 (g) the Utah attorney general or his designee; and
60 (h) the insurance commissioner or his designee.
61 (2) (a) Except as required by Subsection (2)(b), commission members serve four-year
63 (b) Notwithstanding the requirements of Subsection (2)(a), the members appointed to
64 the commission from the following serve an initial term of two years in order to stagger the
65 terms of membership:
66 (i) one member from the Utah Association of Professional Bondsmen and Agents;
67 (ii) the member from the Utah Sheriff's Association;
68 (iii) the member from the Statewide Association of Public Attorneys; and
69 (iv) the member from the general public.
70 (c) A commission member may be reappointed to more than one term.
71 (d) When a vacancy occurs in the membership for any reason, a replacement shall be
72 appointed for the unexpired term.
73 (3) (a) Members of the commission receive no compensation or benefits for their
74 services, but members of the commission who are not government employees may receive per
75 diem and expenses incurred in the performance of the member's official duties at the rates
76 established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
77 (b) A member may decline to receive per diem and expenses for the member's service.
78 (4) Members of the commission shall annually select one member to serve as chair.
79 (5) The department shall provide staff services to the commission.
80 (6) (a) The commission shall meet at least quarterly.
81 (b) The chair may call additional meetings:
82 (i) at the chair's discretion; or
83 (ii) upon the written request of three or more commission members.
84 (7) (a) Five members of the commission constitute a quorum for the transaction of
86 (b) The action of a majority of the members when a quorum is present is the action of
87 the commission.
88 Section 4. Section 31A-2-404 is enacted to read:
89 31A-2-404. Duties of the Joint Bail Bond Commission.
90 The commission shall:
91 (1) review current rules and statutes relating to bail and the business of bail bonds;
92 (2) research and study other issues relating to bail and the business of bail bonds;
93 (3) recommend changes relating to bail and the business of bail bonds to the
94 appropriate agency or to the Legislature;
95 (4) coordinate the efforts of the organizations represented in resolving issues affecting
96 bail bond services;
97 (5) recommend to the Legislature on or before November 30, 2005, the appropriate
98 allocation of a fee to be collected at the jail at the time the bail bond is given to the jail for:
99 (a) the department to:
100 (i) investigate and resolve bail bond complaints;
101 (ii) pay the administrative costs of the commission; and
102 (iii) employ investigators;
103 (b) the Department of Public Safety to:
104 (i) investigate and resolve bail bond enforcement agent complaints;
105 (ii) investigate violations of the state law pertaining to bail enforcement agent
106 licensees; and
107 (iii) employ investigators to conduct investigations required under this Section (5)(b);
108 (c) the jails to:
109 (i) provide bail services in the jail; and
110 (ii) pay the costs of collecting and processing the fee;
111 (6) perform other duties as provided in this title.
112 Section 5. Section 31A-2-405 is enacted to read:
113 31A-2-405. Commission funding.
114 The department is authorized to pay administrative expenses of the commission from
115 the bail bond surety administration account under Section 31A-35-407 .
116 Section 6. Section 31A-35-401 is amended to read:
117 31A-35-401. Requirement for license or certificate of authority -- Process -- Fees
118 -- Limitations.
119 (1) (a) A person may not engage in the bail bond surety insurance business unless that
121 (i) is a bail bond surety company licensed under this chapter;
122 (ii) is a surety insurer that is granted a certificate under this section in the same manner
123 as other insurers doing business in this state are granted certificates of authority under this title;
125 (iii) is a bail bond producer licensed in accordance with this section.
126 (b) A bail bond surety company shall be licensed under this chapter as an agency.
127 (c) A bail bond producer shall be licensed under Chapter 23a, Insurance Marketing -
128 Licensing Producers, Consultants, and Reinsurance Intermediaries, as a limited lines producer.
129 (2) A person applying for a bail bond surety company license under this chapter shall
130 submit to the commissioner:
131 (a) a completed application form as prescribed by the commissioner;
132 (b) a fee as determined by the commissioner in accordance with Section 63-38-3.2 ,
133 which may take into account administrative expenses of the Joint Bail Bond Commission Act
134 created under Title 31A, Chapter 2, Part 4, Joint Bail Bond Commission Act; and
135 (c) any additional information required by rule.
136 (3) Fees required under this section are not refundable.
137 (4) Fees collected from a bail bond surety company shall be deposited in a restricted
138 account created in Section 31A-35-407 .
139 (5) (a) A bail bond surety company shall be domiciled in Utah.
140 (b) A bail bond producer shall be a resident of Utah.
141 (c) A foreign surety insurer that is granted a certificate to issue bail bonds may only
142 issue bail bonds through a bail bond surety company licensed under this chapter.
143 Section 7. Section 63-55b-131 is amended to read:
144 63-55b-131. Repeal dates, Title 31A.
145 (1) Section 31A-2-405 is repealed July 1, 2006.
148 repealed July 1, 2005.
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