General Assembly Raised Bill No. 6734
January Session, 2015 LCO No. 3255
*03255_______INS*
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
General Assembly
Raised Bill No. 6734
January Session, 2015
LCO No. 3255
*03255_______INS*
Referred to Committee on INSURANCE AND REAL ESTATE
Introduced by:
(INS)
AN ACT CONCERNING SURETY BAIL BOND AGENTS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (b) of section 38a-660c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(b) If a surety bail bond agent enters into a premium financing arrangement, such agent shall require (1) the principal on the bail bond or any indemnitor to make a minimum down payment of [thirty-five] fifty per cent of the premium due, at the premium rate approved by the commissioner pursuant to chapter 701, and (2) the principal and any indemnitor to execute a promissory note for the balance of the premium due. Such promissory note shall provide that such balance shall be paid not later than fifteen months after the date of the execution of the bail bond. If such balance has not been paid in full to the surety bail bond agent by the due date or a payment due under such arrangement is more than sixty days in arrears, such agent [shall] may file a civil action seeking appropriate relief with the court not later than seventy-five days after such due date or may apply to a judge of the Superior Court in writing to be released from the bond as set forth in section 54-65, as amended by this act. The surety bail bond agent shall make a diligent effort to obtain judgment after filing such [complaint] action on such promissory note unless good cause is shown for [failure to obtain judgment] failing to do so, including, but not limited to, the filing for bankruptcy by the principal or the indemnitor or failure to serve process despite good faith efforts.
Sec. 2. Section 54-65 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(a) (1) Any surety in a recognizance in criminal proceedings, who believes that such surety's principal intends to abscond, shall apply to a judge of the Superior Court, produce such surety's bail bond or evidence of being a surety, and verify the reason of such surety's application by oath or otherwise. Thereupon, the judge shall immediately grant a mittimus, directed to a proper officer or indifferent person, commanding such officer or indifferent person immediately to arrest the principal and commit the principal to a community correctional center. The Community Correctional Center Administrator shall receive the principal and retain the principal in a community correctional center until discharged by due order of law. The surrender of the principal shall be a full discharge of the surety upon such surety's bond or recognizance.
[(b)] (2) If the principal of a surety in a recognizance in criminal proceedings absconds, such surety may apply, prior to six months after the date the bond is ordered forfeited, to a judge of the Superior Court to be released from such bond. The judge may release such surety from such bond for good cause shown.
(b) Any surety bail bond agent in a recognizance in criminal proceedings, whose principal has failed to pay in full the balance of the promissory note executed pursuant to subsection (b) of section 38a-660c, as amended by this act, by the due date or for which payment due under the premium financing arrangement is more than sixty days in arrears, may apply to a judge of the Superior Court in writing to be released from the bond. The judge may release the surety bail bond agent from such bond upon demonstration by such agent that the agent has made a diligent effort to collect such balance or payment due, or for good cause shown.
Sec. 3. Subsection (k) of section 38a-660 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(k) (1) (A) To further the enforcement of this section and sections 38a-660b to 38a-660m, inclusive, as amended by this act, and to determine the eligibility of any licensee, the commissioner may, as often as the commissioner deems necessary, examine the books and records of any such licensee. Each person licensed as a surety bail bond agent in this state shall, on or before January thirty-first, annually, pay to the commissioner a fee of four hundred fifty dollars to cover the cost of examinations under this subsection.
(B) If such person fails to pay such fee on or before January thirty-first, annually, the license of such person shall automatically expire on the February first immediately following. The commissioner shall timely notify, annually, each person licensed as a surety bail bond agent in this state about such automatic expiration provision.
(C) The commissioner may adopt regulations, in accordance with the provisions of chapter 54, to establish provisions to govern the reinstatement of a surety bail bond agent license that has automatically expired, including, but not limited to, the time period after such expiration within which a person may request reinstatement and the imposition of a late fee.
(2) The fees received by the commissioner pursuant to subdivision (1) of this subsection shall be dedicated to conducting the examinations under said subdivision (1) and shall be deposited in the account established under subdivision (3) of this subsection.
(3) There is established an account to be known as the "surety bail bond agent examination account", which shall be a separate, nonlapsing account within the Insurance Fund established under section 38a-52a. The account shall contain any moneys required by law to be deposited in the account and any such moneys remaining in the account at the [close of the fiscal] end of each calendar year shall be transferred to the General Fund.
Sec. 4. Section 38a-660m of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):
(a) The commissioner shall adopt regulations, in accordance with the provisions of chapter 54, to establish continuing education requirements for surety bail bond agents. Such regulations shall include, but need not be limited to, the number of hours required for and the time period for completion of such continuing education requirements, the subjects to be covered by any training courses and the method by which such courses may be delivered. The commissioner shall approve the content of the courses to be taught and the schools or facilities at which such courses will be taught.
(b) The commissioner may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of section 38a-660, as amended by this act, and sections 38a-660b to 38a-660k, inclusive.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2015 38a-660c(b)
Sec. 2 October 1, 2015 54-65
Sec. 3 October 1, 2015 38a-660(k)
Sec. 4 October 1, 2015 38a-660m
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2015
38a-660c(b)
Sec. 2
October 1, 2015
54-65
Sec. 3
October 1, 2015
38a-660(k)
Sec. 4
October 1, 2015
38a-660m
Statement of Purpose:
To (1) increase the minimum down payment required from a principal or indemnitor for a bail bond premium financing agreement with a surety bail bond agent, (2) make permissive the filing of a civil action for appropriate relief and permit a surety bail bond agent to apply to the Superior Court to be released from a bond when the balance of the promissory note has not been paid in full by the due date or a payment due is more than sixty days in arrears, (3) permit a judge to whom such application has been made to release the surety bail bond agent from such bond upon demonstration of diligent effort by such agent to collect such balance or payment due or for good cause shown, (4) impose an automatic cancellation of a surety bail bond agent's license if such agent has not paid the annual examination fee by January thirty-first, and (5) require the Insurance Commissioner to adopt regulations to establish continuing education requirements for surety bail bond agents.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]