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First Substitute H.B. 122

Representative Kerry W. Gibson proposes the following substitute bill:


             1     
BAIL BOND AMENDMENTS

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Kerry W. Gibson

             5     
             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
             14      department;
             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:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             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
             25      ENACTS:


             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
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 31A-2-401 is enacted to read:
             34     
Part 4. Joint Bail Bond Commission Act

             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
             53      Agents;
             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
             62      terms.
             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
             85      business.
             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
             120      person:
             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;
             124      or
             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.
             146          [(1)] (2) Section 31A-23a-415 is repealed July 1, 2006.
             147          [(2)] (3) Title 31A, Chapter 38, Federal Health Care Tax Credit Program Act, is
             148      repealed July 1, 2005.


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