Provides relative to criminal bail bonds. (8/1/19)
This bill significantly impacts the regulation of bail bonds in Louisiana, particularly for parishes with populations between 300,000 to 400,000. It allows for adjustments in the bail bond premium rates without requiring repayment of any overcollections that might have occurred under previous law. Furthermore, the stipulated maximum premiums are set at a minimum rate, which could streamline the bail bond process and make it more predictable for surety underwriters operating within the specified demographic areas.
Senate Bill 108 amends Louisiana's existing laws regarding the premium rates on criminal bail bonds. The bill specifies that these premium rates for commercial surety underwriters will no longer be determined by the rates set by the insurance commissioner; instead, they will be set and adjusted by the legislature. This change aims to provide greater legislative control over bail bond premium rates, ensuring they are consistent and appropriately aligned with the state's legal framework.
The general sentiment regarding SB 108 appears to be cautious acceptance among legislators, with many recognizing the need for benchmarking bail bond premiums in alignment with state-wide regulations. However, there are underlying concerns about the implications for local governance and the potential for disparities in bail conditions based on parish demographics. Some lawmakers express the viewpoint that the bill strikes a balance between sufficient regulation and local practicality.
Notable points of contention include the gravitational shift of premium rate setting from an insurance regulatory body to legislative authority, which raises questions about potential political influences on bail bond pricing. Critics might view this as a move towards less accountability in the bail bonds industry. Moreover, the retroactive effect of the provisions established can also lead to legal and operational challenges as existing practices may need to be modified to comply with the new stipulations of SB 108.