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First Substitute S.B. 252

Senator Dennis E. Stowell proposes the following substitute bill:




Chief Sponsor: Dennis E. Stowell

House Sponsor: R. Curt Webb

             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions regarding bail bond companies, notice of bond forfeiture,
             10      and satisfaction of the judgment.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires notification to the bail bond company by the commissioner of nonpayment
             14      of a judgment; and
             15          .    provides that a bail bond company has five business days after notification of a
             16      nonpayment of judgment to satisfy the judgment.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          31A-35-504, as last amended by Laws of Utah 2006, Chapter 332
             25      Be it enacted by the Legislature of the state of Utah:

             26          Section 1. Section 31A-35-504 is amended to read:
             27           31A-35-504. Failure to pay bail bond forfeiture -- Grounds for suspension and
             28      revocation of bail bond surety license.
             29          (1) As used in this section:
             30          (a) "Company" means a bail bond surety company.
             31          (b) "Judgment" means a judgment of bond forfeiture issued under Section 77-20b-104 .
             32          (2) (a) (i) A company shall pay a judgment not later than 15 days following service of
             33      notice upon the company from a prosecutor of the entry of the judgment.
             34          (ii) A company may pay a bond forfeiture to the court prior to judgment.
             35          (b) (i) A prosecutor who does not receive proof of or notice of payment of the
             36      judgment within 15 days after the service of notice to the company of a judgment shall notify
             37      the commissioner of the failure to pay the judgment.
             38          (ii) The commissioner shall notify the company, by the most expeditious means
             39      available, of the nonpayment of the judgment.
             40          (iii) The company shall satisfy the judgment within five business days after receiving
             41      notice under Subsection (2)(b)(ii). If the judgment is not satisfied at the end of the five days,
             42      the commissioner may suspend the company's license under Subsection (3).
             43          (c) If notice of entry of judgment is served upon the company by mail, three additional
             44      days are added to the 15 days provided in Subsections (2)(a), (2)(b), and (2)(d).
             45          (d) A prosecutor may not proceed under Subsection (2)(b) if a company, within 15
             46      days after service of notice of the entry of judgment is served:
             47          (i) files a motion to set aside the judgment or files an application for an extraordinary
             48      writ; and
             49          (ii) provides proof that the surety has posted the judgment amount with the court in the
             50      form of cash, a cashier's check, or certified funds.
             51          (e) As used in this section, the filing of the following tolls the time within which a
             52      company is required to pay a judgment if the motion or application is filed within 15 days after
             53      the day on which service of notice of the entry of a judgment is served:
             54          (i) a motion to set aside a judgment; or
             55          (ii) an application for extraordinary writ.
             56          (3) The commissioner shall suspend the license of the company not later than five days

             57      following [receipt of notice from a prosecutor of the company's failure to pay the judgment] the
             58      company's failure to satisfy the judgment as required under Subsection (2)(b).
             59          (4) If the prosecutor receives proof of or notice of payment of the judgment during the
             60      suspension period under Subsection (3), the prosecutor shall immediately notify the
             61      commissioner of the payment. The notice shall be in writing and by the most expeditious
             62      means possible, including facsimile or other electronic means.
             63          (5) The commissioner shall lift a suspension under Subsection (3) within five days of
             64      the day on which all of the following conditions are met:
             65          (a) the suspension has been in place for no fewer than 14 days;
             66          (b) the commissioner has received written notice of payment of the unpaid forfeiture
             67      from the prosecutor; and
             68          (c) the commissioner has received:
             69          (i) no other notice of any unpaid forfeiture from a prosecutor; or
             70          (ii) if a notice of unpaid forfeiture is received, written notice from the prosecutor that
             71      the unpaid forfeiture has been paid.
             72          (6) The commissioner shall commence an administrative proceeding and revoke the
             73      license of a company that fails to meet the conditions under Subsection (5) within 60 days
             74      following the initial date of suspension.
             75          (7) This section does not restrict or otherwise affect the rights of a prosecutor to
             76      commence collection proceedings under Subsection 77-20b-104 (5).

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