Bill Text: AZ SB1599 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Bail bond agents; recovery agents
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2011-02-02 - Referred to Senate JUD Committee [SB1599 Detail]
Download: Arizona-2011-SB1599-Introduced.html
|
REFERENCE TITLE: bail bond agents; recovery agents |
|
State of Arizona Senate Fiftieth Legislature First Regular Session 2011
|
|
SB 1599 |
|
|
|
Introduced by Senators Shooter: McComish, Murphy; Representative McLain
|
AN ACT
Amending sections 13‑2508, 13‑3885, 13‑3967 and 13‑3969, Arizona Revised Statutes; Amending title 13, chapter 38, article 12, Arizona Revised Statutes, by adding section 13‑3970; amending sections 13‑3974 and 20‑340, Arizona Revised Statutes; renumbering sections 20‑340.01, 20-340.03, 20‑340.05 and 20-340.06, Arizona Revised Statutes, as sections 20‑340.03, 20‑340.04, 20-340.09 and 20-340.08, respectively; repealing section 20‑340.04, Arizona Revised Statutes; amending title 20, chapter 2, article 3.4, Arizona Revised Statutes, by adding a new section 20‑340.01; amending section 20‑340.02, Arizona Revised Statutes; amending sections 20‑340.03 and 20-340.04, Arizona Revised Statutes, as renumbered by this act; amending title 20, chapter 2, article 3.4, Arizona Revised Statutes, by adding new sections 20‑340.05 and 20‑340.06 and section 20‑340.07; amending section 20‑340.08, Arizona Revised Statutes, as renumbered by this act; amending section 20‑2901, Arizona Revised Statutes; relating to bail bond agents.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 13-2508, Arizona Revised Statutes, is amended to read:
13-2508. Resisting arrest; classification; definition
A. A person commits resisting arrest by intentionally preventing or attempting to prevent a person reasonably known to him to be a peace officer, acting under color of such peace officer's official authority, from effecting an arrest by:
1. Using or threatening to use physical force against the peace officer or another; or
2. Using any other means creating a substantial risk of causing physical injury to the peace officer or another.
B. Resisting arrest is a class 6 felony.
C. For the purposes of this section, "peace officer" includes a bail recovery agent, or a bail bond agent, as defined in section 20-340.
Sec. 2. Section 13-3885, Arizona Revised Statutes, is amended to read:
13-3885. Arrest of principal by surety; prohibited conduct; violation; classification; definitions
A. For the purpose of surrendering the defendant, a surety on the bail bond of a defendant may arrest the defendant before the forfeiture of the undertaking or, by written authority attached to a certified copy of the undertaking, may empower a bail recovery agent or a bail bond agent as defined in section 20‑340 to arrest the defendant.
B. a bail recovery agent or a bail bond agent shall:
1. Provide notice to the local law enforcement agency of the surety's or agent's intention to apprehend or arrest the defendant in the law enforcement agency's jurisdiction and of the defendant's custody after the arrest.
2. Except as provided in paragraph 3 of this subsection, immediately return the defendant to the custody of the sheriff of the county in which the prosecution is pending.
3. if the defendant is in need of medical attention, immediately transport the defendant to a hospital for medical treatment.
B. C. A bail recovery agent or a bail bond agent shall not do any of the following:
1. Enter an occupied residential structure without the consent of the occupants or owner who are present at the time of the entry.
2. Conduct a bail recovery arrest or apprehension without written authorization from a bail bond agent or agency licensed in Arizona this state.
3. Wear, carry or display any uniform, badge, shield or other insignia or emblem that implies that the bail recovery agent is an employee, officer or agent of this state, a political subdivision of this state or the federal government. A bail recovery agent may display identification that indicates the agent's status as a bail recovery agent only.
4. Authorize or allow any third party bail recovery agent to undertake an apprehension or arrest if the bail recovery agent has been convicted in any jurisdiction of theft or of any felony or any crime involving carrying or the illegal use or possession of a deadly weapon or dangerous instrument.
5. Maintain custody of a defendant for more than two hours unless:
(a) The bail recovery agent or bail bond agent is returning the defendant to the custody of a law enforcement agency where a judicial proceeding is pending immediately following an arrest or apprehension from another jurisdiction, including another state's jurisdiction.
(b) Medical attention is required.
C. D. The surety or bail bond agent employing, hiring as an independent contractor or otherwise utilizing a bail recovery agent shall advise the department of insurance in writing that the bail recovery agent is providing the services to the surety or bail bond agent on a given case or cases. The written notice to the department of insurance must be given within twenty‑four hours after the retention and shall include the name, date of birth, home and business addresses and telephone number of the bail recovery agent. The bail recovery agent identified in the written notice shall certify on the written notice, under penalty of perjury, that the bail recovery agent has never been convicted in any jurisdiction of theft or of any felony or any crime involving carrying or the illegal use or possession of a deadly weapon or dangerous instrument and that the bail recovery agent has complied with section 20‑340.04 is licensed pursuant to title 20, chapter 2, article 3.4.
D. Bail bond agents shall provide an annual report to the department of insurance listing all bail recovery agents employed, hired as independent contractors or otherwise utilized by the bail bond agent during the year. This report shall certify that all employees of the bail bond agent have met the requirements prescribed in section 20‑340.03 and that all bail recovery agents have complied with section 20‑340.04. The report shall include the name, home and business addresses, date of birth, telephone number, and a two‑inch wide by three‑inch high photograph of the face of each person identified in the report.
E. To satisfy the requirements of this section, a bail bond agent who is licensed in another state but who is not licensed in this state shall contract with a bail bond agent who is licensed in this state to retain the services of a bail recovery agent in this state.
F. On the request of a bail bond agent or a bail recovery agent, a local law enforcement agency shall assist the agent in the apprehension or arrest of a defendant.
F. G. Any person who violates subsection B C or E of this section is guilty of a class 5 felony. Any person who violates subsection C or D of this section is subject to the provisions of section 20‑295 20‑340.02.
G. H. For the purposes of this section:
1. "Bail bond agent" has the same meaning prescribed in section 20‑282.01 20‑340.
2. "Bail recovery agent" means any person who has never been convicted in any jurisdiction of theft or of a felony or any crime involving carrying or the illegal use or possession of a deadly weapon or dangerous instrument and who is employed or hired as an independent contractor or otherwise utilized by a bail bond agent to assist the bail bond agent in presenting a defendant in court when required, in apprehending a defendant and surrendering the defendant to a court or in keeping a defendant under necessary surveillance. Bail recovery agent does not include an attorney or law enforcement officer who acts in an official capacity and who assists a bail bond agent in the bail bond agent's business has the same meaning prescribed in section 20‑340.
3. "Occupied residential structure" means an edifice of a type that is generally used to house human beings.
Sec. 3. Section 13-3967, Arizona Revised Statutes, is amended to read:
13-3967. Release on bailable offenses before trial; definition
A. At his appearance before a judicial officer, any person who is charged with a public offense that is bailable as a matter of right shall be ordered released pending trial on his own recognizance or on the execution of bail in an amount specified by the judicial officer. The judicial officer shall allow a secured appearance bond in all cases that bail is permitted except if the defendant has previously failed to appear or is being held for unpaid child support, fines or fees. A government agency shall not accept credit card payment for a secured appearance bond.
B. In determining the method of release or the amount of bail, the judicial officer, on the basis of available information, shall take into account all of the following:
1. The views of the victim.
2. The nature and circumstances of the offense charged.
3. The weight of evidence against the accused.
4. The accused's family ties, employment, financial resources, character and mental condition.
5. The results of any drug test submitted to the court.
6. Whether the accused is using any substance if its possession or use is illegal pursuant to chapter 34 of this title.
7. Whether the accused violated section 13‑3407, subsection A, paragraph 2, 3, 4 or 7 involving methamphetamine or section 13‑3407.01.
8. The length of residence in the community.
9. The accused's record of arrests and convictions.
10. The accused's record of appearance at court proceedings or of flight to avoid prosecution or failure to appear at court proceedings.
11. Whether the accused has entered or remained in the United States illegally.
12. Whether the accused's residence is in this state, in another state or outside the United States.
C. If a judicial officer orders the release of a defendant who is charged with a felony either on his own recognizance or on bail, the judicial officer shall condition the defendant's release on the defendant's good behavior while so released. On a showing of probable cause that the defendant committed any offense during the period of release, a judicial officer may revoke the defendant's release pursuant to section 13‑3968.
D. After providing notice to the victim pursuant to section 13‑4406, a judicial officer may impose any of the following conditions on a person who is released on his own recognizance or on bail:
1. Place the person in the custody of a designated person or private‑sector organization agreeing to supervise him.
2. Place restrictions on the person's travel, associates or place of abode during the period of release.
3. Require the deposit with the clerk of the court of cash or other security, such deposit to be returned on the performance of the conditions of release.
4. Prohibit the person from possessing any dangerous weapon or engaging in certain described activities or indulging in intoxicating liquors or certain drugs.
5. Require the person to report regularly to and remain under the supervision of an officer of the court or the surety that posted the bond.
6. Impose any other conditions deemed reasonably necessary to assure appearance as required including a condition requiring that the person return to custody after specified hours.
E. In addition to any of the conditions a judicial officer may impose pursuant to subsection D of this section, the judicial officer shall impose both of the following conditions on a person who is charged with a felony violation of chapter 14 or 35.1 of this title and who is released on his own recognizance or on bail:
1. Electronic monitoring where available.
2. A condition prohibiting the person from having any contact with the victim.
F. The judicial officer who authorizes the release of the person charged on his own recognizance or on bail shall do all of the following:
1. Issue an appropriate order containing statements of the conditions imposed.
2. Inform the person of the penalties that apply to any violation of the conditions of release.
3. Advise the person that a warrant for his arrest may be issued immediately on any violation of the conditions of release, including the failure to submit to deoxyribonucleic acid testing ordered pursuant to paragraph 4 of this subsection.
4. If the person is charged with a felony or misdemeanor offense listed in section 13‑610, subsection O, paragraph 3 and is summoned to appear, order the person to report within five days to the law enforcement agency that arrested the person or to the agency's designee and submit a sufficient sample of buccal cells or other bodily substances for deoxyribonucleic acid testing and extraction. If a person does not comply with an order issued pursuant to this subsection paragraph, the court shall revoke the person's release.
G. At any time after providing notice to the victim pursuant to section 13‑4406, the judicial officer who orders the release of a person on any condition specified in this section or the court in which a prosecution is pending may amend the order to employ additional or different conditions of release, including either an increase or reduction in the amount of bail. On application, the defendant shall be entitled to have the conditions of release reviewed by the judicial officer who imposed them or by the court in which the prosecution is pending. Reasonable notice of the application shall be given to the county attorney and the victim.
H. Any information that is stated or offered in connection with any order pursuant to this section need not conform to the rules pertaining to admissibility of evidence in a court of law.
I. This section does not prevent the disposition of any case or class of cases by forfeiture of bail or collateral security if such disposition is authorized by the court.
J. A judicial officer who orders the release of a juvenile who has been transferred to the criminal division of the superior court pursuant to section 8‑327 or who has been charged as an adult pursuant to section 13‑501 shall notify the appropriate school district on the release of the juvenile from custody.
K. For the purposes of this section and section 13‑3968, "judicial officer" means any person or court authorized pursuant to the constitution or laws of this state to bail or otherwise release a person before trial or sentencing or pending appeal.
Sec. 4. Section 13-3969, Arizona Revised Statutes, is amended to read:
13-3969. Bail bond agent lists; prohibition; rotation; acceptance of bonds
A. The sheriff or keeper of the a county or city jail shall provide to a person charged with a bailable offense in his custody a list containing the names and telephone numbers of those persons authorized to post bail bonds in the county. Persons authorized to post bail bonds in the county may be listed under their own name or a trade name if the trade name is registered with the secretary of state. The list shall be updated annually monthly. A bail bond agent's name or trade name may appear only once on the list.
B. The sheriff or keeper of the a county or city jail shall not recommend any authorized bail bond agent to a person charged with a bailable offense in the sheriff's or keeper's custody and shall rotate quarterly monthly the order of the names and telephone numbers of the authorized bail bond agents listed. The list shall be posted where an arrestee can use the list. Employees of the sheriff or a county or city jail are prohibited from assisting an arrestee in calling a bail bond agent.
C. The sheriff or keeper of the a county or city jail in the county in which criminal charges are filed or in which the person charged is jailed shall accept the bond from any person employee of a bail bond agent or agency.
D. Except as otherwise provided in this section, the sheriff or keeper of a county or city jail is prohibited from advertising for, benefitting from or displaying information regarding any private entity relating to bail bonds in or around where prisoners are housed or in the courts through the use of kiosks or websites.
Sec. 5. Title 13, chapter 38, article 12, Arizona Revised Statutes, is amended by adding section 13-3970, to read:
13-3970. Bail bond forfeiture; administrative fee; bond forfeiture fund; remission
A. If a defendant is admitted to bail and fails to appear and surrender himself to the bail bond agent, court or any law enforcement agency according to the conditions of his bond, the court shall do all of the following:
1. Issue a warrant for the defendant's arrest.
2. If the bail is secured by an appearance bond, within seventy-two hours of the issuance of the warrant, notify the bail bond agent and surety of the defendant's failure to appear.
3. Set a hearing within one hundred eighty days requiring the parties and the surety to show just cause why the bond should not be forfeited. The court shall provide notice of the hearing to the parties and the surety by mailing a copy of the minute entry to the addresses previously provided by the parties to the court.
B. At the hearing, if the defendant's failure to appear is not satisfactorily explained to the court, the court shall Order that the bond be forfeited on the one hundred eighty‑first day after the date on which the defendant failed to appear. The court shall provide notice of the order of forfeiture to the parties and the surety by mailing a copy of the minute entry to the addresses previously provided by the parties to the court.
C. If a defendant is arrested on a bench warrant by a law enforcement agency before the defendant's bond is forfeited on the one hundred eighty‑first day from failing to appear, The surety shall pay the transportation cost of a state department of corrections private extradition contractor or the actual transportation cost to deliver the defendant to the sheriff of the county in which judicial proceedings are pending.
D. If the surety surrenders the defendant into the custody of the sheriff of the county in which the prosecution is pending and the sheriff reports the surrender to the court within seven months after the bond is forfeited, the surety may petition for remission of bail. The amount of remission is the total amount of bail forfeited minus ten per cent of the total bail for each thirty days that the bench warrant was active.
E. If a defendant is arrested on new, unrelated charges while on bond and the arrest occurs before the defendant fails to appear for the case that the defendant is on bond for, the bail bond agent or surety is relieved from responsibility and the bond is exonerated immediately. The defendant is required to post a new bond on all pending cases.
F. If a defendant is arrested outside the jurisdiction of the pending case on new, unrelated charges while on bond and the arrest occurs before the defendant fails to appear for the case that the defendant is on bond for, the court shall issue a bench warrant with no bond until the defendant is returned to the jurisdiction of the pending case. The transportation costs may be charged to the bail bond agency or surety and the remaining balance of the bond is exonerated.
Sec. 6. Section 13-3974, Arizona Revised Statutes, is amended to read:
13-3974. Exoneration of appearance bond
Except as prescribed in section 13-3970, a surety may shall be relieved from liability on an appearance bond if the surety surrenders the defendant into the custody of the sheriff of the county in which the prosecution is pending and the sheriff reports the surrender to the court.
Sec. 7. Section 20-340, Arizona Revised Statutes, is amended to read:
20-340. Definitions
In this article, unless the context otherwise requires:
1. "Bail bond" means a financial guarantee provided by a surety insurer that allows an arrestee to be released from custody and that insures the arrestee's appearance at judicial proceedings.
2. "Bail bond agency" means a business or corporation that is authorized to conduct bail bonds transactions.
1. 3. "Bail bond agent" means an individual who is appointed by an insurer through a power of attorney to execute or countersign bail bonds in connection with judicial proceedings and who receives or is promised monies or other things of value for that service a person who engages in a criminal bail transaction on behalf of a surety insurer or the insurer's representative.
4. "Bail bond transaction" means a transaction between a bail bond agent or agency and an arrestee or indemnitor to secure collateral, premiums and fees for securing the release of an arrestee and guaranteeing a set sum of money to the court if the arrestee fails to appear at court.
2. 5. "Bail recovery agent" has the same meaning prescribed in section 13‑3885. means any person who is employed or hired as an independent contractor or otherwise used by a bail bond agent to assist the bail bond agent in presenting a defendant in court when required, in apprehending a defendant and surrendering the defendant to a court or in keeping a defendant under necessary surveillance. Bail recovery agent does not include an attorney or law enforcement officer who acts in an official capacity and who assists a bail bond agent in the bail bond agent's business.
6. "Co‑indemnitor" means a secondary person who pays a premium or who provides collateral to have a bail bond executed in conjunction with a bail transaction.
7. "Indemnitor" means a person who pays a premium or who provides collateral to have a bail bond executed in conjunction with a bail transaction.
8. "Licensee" means a bail bond agent or bail recovery agent who is licensed pursuant to this article.
9. "Surety insurer" means an insurer who is authorized as a surety insurer in this state, who executes a bail bond and who is bound to pay the bond amount if the arrestee fails to comply with conditions of the bail bond.
Sec. 8. Renumber
Sections 20-340.01, 20-340.03, 20-340.05 and 20-340.06, Arizona Revised Statutes, are renumbered as sections 20-340.03, 20-340.04, 20-340.09 and 20‑340.08, respectively.
Sec. 9. Repeal
Section 20-340.04, Arizona Revised Statutes, is repealed.
Sec. 10. Title 20, chapter 2, article 3.4, Arizona Revised Statutes, is amended by adding a new section 20-340.01, to read:
20-340.01. Applicant qualifications; application for license; fingerprinting; education; license required
A. An applicant for a bail bond agent or a bail recovery agent license under this article shall:
1. Submit an application prescribed by the department.
2. Be at least eighteen years of age.
3. Submit an affidavit attesting to the applicant's residency in this state for at least one year immediately preceding the date of application.
4. Have successfully completed a six hour course of instruction in bail bonds that is offered by a state or national organization of bail bond agents or an organization that administers training programs for bail bond agents and that is approved by the department. In addition, the applicant shall have completed fourteen hours of education and training as specified in rule by the department.
B. An applicant for licensure under this chapter shall submit a full set of fingerprints to the department, at the applicant's own expense, for the purpose of obtaining a state and federal criminal history records check pursuant to section 41-1750 and P.L. 92-544. The department may exchange this fingerprint data with the federal bureau of investigation. A license shall not be issued until the information is received by the department of insurance from the department of public safety and the applicant is qualified for licensure.
C. A person shall not act as or represent that the person is a bail bond agent or a bail recovery agent unless the person is licensed as a bail bond agent or bail recovery agent pursuant to this article and is acting within the scope of the person's employment for a bail bond agency licensed pursuant to this title.
Sec. 11. Section 20-340.02, Arizona Revised Statutes, is amended to read:
20-340.02. Bond of bail bond agents
A. Each applicant for a bail bond agent's license or license renewal shall file with the application and shall maintain in force while licensed a bond in favor of this state executed by a surety insurer authorized to do business in this state. The bond may be continuous in form, and total aggregate liability on the bond shall be at least ten one hundred thousand dollars. The applicant shall place the bond on deposit with the state treasurer through the director's office. The bond shall be conditioned on full accounting and due payment to the person entitled to the bond of monies or property coming into the bail bond agent's possession as an incident to bail bond transactions under the license.
B. The bond remains in force until released by the director or until cancelled by the surety. Without prejudice to any liability previously incurred, the surety may cancel the bond on thirty days' advance written notice filed with the director.
Sec. 12. Section 20-340.03, Arizona Revised Statutes, as renumbered by this act, is amended to read:
20-340.03. Bail bond agents; bail bond agencies; place of business; maintenance of records
A. A person shall not act as a bail bond agent in this state unless the person is licensed by the director in accordance with pursuant to this article.
B. The director shall not license a resident business entity as a bail bond agent agency unless each owner and shareholder member, officer or director is individually licensed as a bail bond agent. In order for the department to license a bail bond agency, the agency must be registered with the corporation commission as a corporation, partnership or limited liability company and any trade names must be registered with the secretary of state. Each bail bond agency may have only one trade name.
C. Each bail bond agent shall have and maintain a place of business in this state that is accessible to the public and where the bail bond agent principally conducts transactions under the agent's license.
D. Each bail bond agency shall keep complete records of all business done under the agency's license, including bond contracts and documents related to bond contracts. The director or the director's designee may examine the records at any business time at the agency's principal place of business. As a minimum requirement for permanent office records, each bail bond agent and general lines agent who agency that is engaged in the bail bond business shall maintain a daily bond register that is the original and permanent record of all bonds or undertakings executed by the licensee each bail bond agent employed by the agency and that states the:
1. Number of the power of attorney form.
2. Date the bond was executed.
3. Name of the principal.
4. Amount of the bond.
5. Premium charged and reported to the surety.
6. Premium reported to the surety company.
7. Security or collateral received.
8. Date the security or collateral was received and the date released.
9. Indemnity agreements.
10. 6. Disposition of the bond.
11. 7. Date of disposition.
E. Each bail bond agent and general lines agent who is engaged in the bail bond business and who accepts monies or any other consideration for any bail bond undertaking shall for each payment received give to the person paying the monies or giving the consideration a prenumbered receipt as evidence of payment. The receipt must state the date, the name of the principal, a description of the consideration or amount of monies received and the purpose for which received, the number of the power of attorney form attached to the bond, the penal sum of the bond, the name of the person making the payment or giving the consideration and the terms under which the monies or other consideration shall be released. Each bail bond agent shall retain a duplicate copy of each receipt issued as part of the agent's records.
F. E. The bail bond agent shall keep at the agent's place of business the usual and customary records pertaining to transactions made under the bail bond agent's license. The licensee Bail bond agent shall keep all the records as to any particular transaction available and open to the inspection of the director at any business time during the three years immediately after the date of completion of the transaction.
G. F. The director may examine the business practices, books and records of any bail bond agent as often as the director deems appropriate. The bail bond agent shall pay the costs incurred for the examination.
Sec. 13. Section 20-340.04, Arizona Revised Statutes, as renumbered by this act, is amended to read:
20-340.04. Bail bond agent; bail recovery agent; prohibitions
A. A bail bond agent or bail recovery agent shall not:
1. Suggest or advise the employment of or name for employment any particular attorney to represent the agent's principal but may offer a resource list.
2. Solicit business in or around any place where prisoners are confined or in or around any court.
3. 2. Receive or collect for an attorney any monies or other items of value for any attorney fee, cost or other purpose on behalf of an arrestee, unless a receipt is given.
4. For any purpose, directly or indirectly, enter into an arrangement of any kind or have an understanding with any person to inform or notify any bail bond agent directly or indirectly of any of the following:
(a) The existence of a criminal complaint.
(b) The fact of an arrest.
(c) The fact that an arrest of any person is pending or contemplated.
(d) Any information pertaining to matters described in this paragraph or to the persons involved.
5. 3. Participate in the capacity of an attorney at a trial or hearing of a person on whose bond the bail bond agent is the surety.
6. 4. Accept anything of value from a principal except the premium and expenses. The bail bond agent may accept collateral security or other indemnity from the principal or on behalf of the principal that the bail bond agent shall return on final termination of liability on the bond unless the collateral has been forfeited because the defendant did not appear in court. The collateral security or other indemnity required by the bail bond agent must be reasonable in relation to the amount of the bond.
7. 5. Give, authorize, sign or countersign in blank any power of attorney to bonds unless the authorized person is a licensed bail bond agent directly employed by the bail bond agent giving the power of attorney.
8. 6. Advertise as or claim to be a surety company.
9. 7. Employ or assist in the employment of any person who has been convicted in any jurisdiction of theft or of any felony or of any crime involving carrying or the possession of a deadly weapon or dangerous instrument. This paragraph does not apply to a person whose felony conviction has been set aside or whose civil rights have been restored because of a felony conviction, except for a conviction of theft or of any crime involving carrying or the possession of a deadly weapon or dangerous instrument.
B. For the purposes of subsection A, this paragraph 9 , "employment" means working for a salary, a commission or under contract or owning, operating or controlling any business or agency that solicits, services or assists in any way in dealing in bail bonds.
8. When selling, soliciting or negotiating a bail bond, mislead, exaggerate or misrepresent any fact, data or information to any person in connection with a bail bond transaction or use coercion or deception.
9. Impose a requirement on an arrestee that conflicts with a requirement specified by a court or law enforcement officer.
10. Write or procure a bond that is not secured by collateral provided by an indemnitor.
11. Require an arrestee who resides in this state to physically report to a location outside of the county in which the arrestee resides unless it is required as part of the terms and conditions agreed on in advance of the bond being posted.
12. Solicit or accept sex, directly or indirectly, in connection with a bail bond transaction.
13. For any purpose, directly or indirectly, enter into an arrangement of any kind or have an understanding with any person to inform or notify any bail bond agent or bail recovery agent directly or indirectly of any of the following:
(a) The existence of a criminal complaint.
(b) The fact of an arrest.
(c) The fact that an arrest of any person is pending or contemplated.
(d) Information pertaining to matters described in this paragraph or to the persons involved.
14. Solicit business in or around any place where prisoners are confined or in or around any court.
15. Post any bail bonds for bail bond agents or sureties that are not licensed in this state or for another bail bond agent who is not an employee of the bail bond agent or agency.
16. Retain the collateral for more than twenty‑one days after the exoneration of the bail bond. If the collateral is not returned, the director may demand that the collateral be returned within five days or the bail bond agent's license shall be suspended pending an administrative hearing.
B. A bail bond agent or bail recovery agent may wear an agency uniform that identifies the person as a bail bond agent or a bail recovery agent.
C. Law enforcement, detention officers, corrections officers, adjudication and prosecution officials and the officials' employees, attorneys‑at‑law, officials authorized to admit to bail and state and county officers shall not be bail bond agents and shall not directly or indirectly assist in or receive any benefits from the execution of any bail bond. This section does not prohibit a bail bond agent from hiring counsel or asking assistance of a law enforcement officer. This section prohibits all government employees from assisting a defendant with bail bond transactions.
D. In any bail transaction or in connection with any bail transaction, a bail bond agent shall not directly or indirectly charge or collect monies or other valuable consideration from any person except for the following purposes:
1. To pay the premium at the rates that are established by the surety insurer and that are approved by the director.
2. To provide collateral.
3. To be reimbursed for actual and reasonable expenses incurred in connection with the individual bail transaction as prescribed in section 20‑340.05.
Sec. 14. Title 20, chapter 2, article 3.4, Arizona Revised Statutes, is amended by adding new sections 20-340.05 and 20-340.06 and section 20‑340.07, to read:
20-340.05. Premiums; fees
A. A bail bond agency shall conspicuously display the bail bond premium schedule at each business location. If a bail bond agent facilitates a bail bond outside of the agent's business location, the agent shall provide a fee disclosure statement that includes all premium and fee schedules to the potential indemnitor.
B. The department shall establish at a biannual public hearing conducted by the department a schedule of reasonable industry expenses that may be charged to an indemnitor or an arrestee including, at a minimum:
1. Guard fees.
2. Notary fees and recording fees.
3. Long-distance telephone expenses and travel expenses incurred.
4. Court required contact management fees.
5. Bail bond recovery fees after an indemnitor or a co‑indemnitor requests the surrender and return of an arrestee to jail.
6. After hours fees.
7. Posting fees.
8. Drug testing fees.
C. The surety insurer or the bail bond agent shall return the bail bond insurance premium to the indemnitor if the bail bond agent surrenders an arrestee to custody before the time specified in the bail bond unless:
1. The arrestee's Return to custody was required by law.
2. The arrestee violated a lawful provision of the bail bond agreement or any bail bond terms and conditions of the bail bond agency.
3. The arrestee misrepresented information on the application for bail bond insurance that caused the risks associated with the arrestee's release to be materially greater than the bail bond agent or surety believed they would be.
4. The arrestee is charged with a new offense and the bail bond agency no longer wants to be responsible for the arrestee and the bail bond issued.
5. The arrestee threatens or intimidates or hires another person to threaten or intimidate a bail bond agent or an employee of the bail bond agency.
6. The arrestee tests positive for a controlled substance in a test administered by the bail bond agent or bail recovery agent.
7. An indemnitor revokes the collateral or fails to pay the agreed premiums and fees on the payment schedule.
A. A bail bond agent may not accept any of the following as collateral for a bail bond:
1. A quit claim deed to real property, except that a bail bond agent may accept a real property deed in the name of the surety insurer.
2. A viatical settlement contract, a life settlement contract or any contract or provision that requires a person to alter the beneficiary on an insurance policy.
3. Hazardous or explosive materials.
4. Any drug, medication or prosthetic.
B. A bail bond agent who receives collateral in connection with a bail transaction shall:
1. Provide to the indemnitor a collateral receipt that contains the following:
(a) The name of the arrestee.
(b) The case number assigned by the court or the booking number assigned by the law enforcement agency.
(c) The bail bond agent's name, business address and telephone number.
(d) The name, address and telephone number of the indemnitor and any co‑indemnitor.
(e) A description of each item of property being held as collateral.
(f) Details regarding the condition of the collateral if the collateral is being stored by the bail bond agent.
(g) A statement that describes the conditions under which the collateral will not be returned to the indemnitor.
(h) An attestation that the information provided by the indemnitor is complete and accurate and that for all property provided as collateral by the indemnitor, the indemnitor is either the owner of the property or is otherwise authorized by the owner to offer the items as collateral in the bail bond transaction.
(i) The signature or electronic verification of all parties to the contract and the date of signing or electronic verification.
2. Maintain the collateral separately from any other monies, assets or property of the bail bond Agent or agency.
3. Prevent the collateral from being used by any person other than the indemnitor.
4. Prevent any person other than the indemnitor from receiving any financial or personal gain from the collateral except to satisfy obligations specified in the indemnity agreement.
C. A bail bond agent shall return the collateral to the indemnitor No later than twenty‑one days after the date of exoneration. The bail bond agent shall report on a quarterly basis all cash collateral to the surety insurer.
D. A bail bond agent or surety insurer may use collateral to satisfy unpaid balances if either of the following applies:
1. The court to which the bail bond was posted has entered an order of judgment forfeiting all or part of the amount of the bond.
2. The court has released the bail bond, the indemnity agreement provides that the bail bond agent may use collateral to pay the balance of unpaid premium and unreimbursed actual and reasonable expenses and the bail bond agent or surety insurer is owed for unpaid premium or actual and reasonable expenses.
E. At least fifteen calendar days before converting noncash collateral to cash and applying the collateral to an obligation under the indemnity agreement, a bail bond agent shall send by certified mail to the last known address of each indemnitor a collateral conversion notice accompanied by a copy of the forfeiture order issued by the court. The collateral conversion notice shall include all of the following:
1. The bail bond premium amount.
2. The amount forfeited to the court.
3. Itemized details of the actual and reasonable expenses incurred by the bail bond agent.
4. The payments made by the arrestee and any indemnitor.
5. The balance due for the bail transaction.
6. The date by which the indemnitor must pay the bail bond agent to avoid having the noncash collateral converted to cash and applied to the unpaid balance.
7. A statement that the bail bond agent may incur actual and reasonable expenses to convert the noncash collateral to cash.
F. A bail bond agent shall make a reasonable effort to recover the fair market value of the noncash collateral when converting the item to cash. The bail bond agent shall not sell, transfer, gift or otherwise convey collateral to any employee, contractor, bail recovery agent or other person acting on behalf of the bail bond agent or agency employing the bail bond agent or to any relative of the bail bond agent for an amount less than fair market value.
G. A bail bond agent shall return to the indemnitor any collateral or any cash from converted collateral that was not required to remunerate the surety insurer or the court and that was not required to pay the actual and reasonable expenses incurred by the bail bond agent.
H. If the aggregate value of the collateral being held by a bail bond agent is more than one hundred thousand dollars, the bail bond agent shall obtain insurance to protect the collateral.
20-340.07. Fees
The department may establish and charge fees for prelicensing examinations, continuing education, issuing licenses and regulating bail bond agents and the bail recovery agent industry pursuant to this article.
Sec. 15. Section 20-340.08, Arizona Revised Statutes, as renumbered by this act, is amended to read:
20-340.08. Application of other laws
To the extent not inconsistent with this article, sections 20-106, 20‑281, 20‑284 and 20‑285, section 20‑286, subsections B, C and D, section 20‑288, subsection B and sections 20‑289, 20‑289.01, 20‑292, 20‑295, 20‑296, 20‑297, 20‑298, 20‑299, 20‑301 and 20‑302 apply to bail bond agents.
Sec. 16. Section 20-2901, Arizona Revised Statutes, is amended to read:
20-2901. Definitions
In this article, unless the context otherwise requires:
1. "Applicant" means a provider organization that submits an application to the contractor to provide continuing education courses.
2. "Approved continuing education course" means any course that has been approved by at least five other states or that is approved by a contractor or automatically approved pursuant to section 20‑2904.
3. "Approved provider" means an organization or individual that offers an approved continuing education course and that is authorized by the contractor to offer the course to a licensee for credit toward the licensee's continuing education requirements.
4. "Continuing education review committee" means the committee appointed by the director pursuant to section 20‑2905 to establish minimum standards that apply to approved providers and approved continuing education courses and minimum performance standards that apply to contractors.
5. "Contractor" means the person who has a contract with the department of insurance to approve continuing education providers and courses and to administer the continuing education program and who is paid through fees collected from approved providers when the approved providers apply for continuing education course approval.
6. "Credit hour" means the value assigned to an hour of instruction in an approved continuing education course.
7. "License period" means the period between the date an Arizona insurance license is issued or last renewed and the expiration date of the Arizona insurance license.
8. "Licensee" means an insurance producer, including a surplus lines broker, or a managing general agent as defined in chapter 2, article 3.1 of this title who at any time during the license period holds a current nonresident license to transact insurance in another state or a bail bond agent. Licensee does not include any firm, corporation or other similar entity or an adjuster as defined in section 20‑321.
9. "Nonresident applicant" means an insurance producer or a managing general agent or service representative who holds a resident license in another state and a nonresident license in this state and who is applying for the renewal of a nonresident license in this state.
10. "Provider organization" means a person that provides continuing education courses but has not yet been accepted as an approved provider pursuant to section 20‑2904.
Sec. 17. Exemption from rule making
For the purposes of this act, the department of insurance is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for two years after the effective date of this act.
Sec. 18. Applicability
Section 20‑340.02, Arizona Revised Statutes, as amended by this act, does not apply to bail bond agents who are licensed on the effective date of this act until the bail bond agent's license renewal or two years after the effective date of this act, whichever is later.
