HB685 By Representative Hill (M) RFD Judiciary Rd 1 19-MAY-15

SYNOPSIS: Under existing law, a bail bondsman must be approved as either a professional surety company or professional bail company and be approved by the presiding circuit judge of each county in which the bail bondsman desires to operate.

This bill would create the Alabama Bail Bond Regulatory Act to require professional bondsmen and recovery agents to register with the Alabama Professional Bail Bonding Board, created under the act.

This bill would provide for the membership and duties of the board, would provide procedures for licensure applications, would specify qualifications for licensure, and would provide criminal penalties for making false statements to the board.

This bill would also provide for the suspension and revocation of licenses and would require licensees to complete continuing professional education.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

A BILL TO BE ENTITLED AN ACT

Relating to bail bonds; to require professional bondsmen and recovery agents to register with the Alabama Professional Bail Bonding Board; to create the board; to provide for the membership and duties of the board; to create the Alabama Bail Bond Board Fund; to provide procedures for licensure applications; to provide for qualifications for licensure; to provide for criminal penalties for making false statements to the board; to provide for the suspension and revocation of licenses; to authorize civil penalties for violations; to require the completion of continuing education; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This act shall be known and may be cited as the Alabama Bail Bond Regulatory Act.

Section 2. For the purposes of this act, the following terms shall have the following meanings:

(1) BOARD. Alabama Professional Bail Bonding Board.

(2) PROFESSIONAL BONDSMAN. Any individual person who is employed by a professional bail company to solicit and execute appearance bonds or actively seek bail bond business for or on behalf of a professional bail company, including any individual who has a direct or indirect ownership interest in a professional bail company.

(3) PROFESSIONAL SURETY BONDSMAN. Any individual person who is employed by a professional surety company to solicit and execute appearance bonds or actively seek bail bond business for or on behalf of a professional surety company, including any individual who has a direct or indirect ownership interest in a professional surety company.

(4) RECOVERY AGENT. Any individual, other than an attorney or law enforcement officer, utilized by a professional surety company, professional bail company, or professional bondsman to apprehend a defendant who was released on bail and who failed to appear in court when required.

Section 3. A person may not hold himself or herself out to the public as a professional bondsman, or operate as a recovery agent, or use any term, title, or abbreviation that expresses, infers, or implies that the person is licensed as a professional bondsman unless the person at the time holds a valid license as professional bondsman as provided in this act. All applicants shall pass an examination, unless exempted by this act, based on criteria established by the Alabama Professional Bail Bonding Board and established under Section 4 and shall comply with the continuing education requirements established by this act.

Section 4. (a) There is created the Alabama Professional Bail Bonding Board. The membership of the board shall reflect the diversity of the state.

(b) Members of the board shall have had five years of experience working with the professional bail bonding industry, including experience as a law enforcement officer, judge, attorney-at-law, court clerk, professional bondsman, magistrate, lawmaker, or otherwise, prior to his or her appointment.

(c) The following members shall be appointed to the board:

(1) One person appointed by the Governor. The Governor shall appoint the member to an initial term of three years. Thereafter, successor members shall be appointed for terms of four years each.

(2) Two persons appointed by the Speaker of the House of Representatives for initial terms of two years. Thereafter, successor members shall be appointed for terms of four years.

(3) Two persons appointed by the Senate Pro Tem for initial terms of four years. Thereafter, successor members shall be appointed for terms of four years.

(d) Following the initial appointments, all successor members of the board shall be appointed for a term of four years and shall serve until their successors are appointed and qualified by subscribing to the constitutional oath of office, which shall be filed with the Secretary of State.

(e) Any vacancy occurring on the board shall be filled by the appointing authority of the vacating member for the unexpired term.

(f) A member may not be appointed to succeed himself or herself for more than three full terms.

(g) The appointing authority may remove a member of the board for misconduct, incompetency, or willful neglect of duty. The board may recommend to the appointing authority suggested administrative actions that may be taken against a board member for missing an excessive amount of meetings.

(h) Each member of the board shall receive a certificate of appointment from the appointing authority before entering upon the discharge of the duties of office.

(i) Members of the board shall receive compensation for his or her service as a board member in the amount of five hundred dollars ($500) per month and such other reasonable and necessary expenses incurred in the discharge of his or her duties.

(j) The board shall be subject to the Alabama Sunset Law, Chapter 20, Title 41, Code of Alabama 1975, as an enumerated agency as provided in Section 41-20-3, Code of Alabama 1975, and shall have a termination date of October 1, 2018, and every four years thereafter, unless continued pursuant to the Alabama Sunset Law.

Section 5. (a) Absent unreasonable or reckless conduct, the members and employees of the board are granted immunity from civil liability and may not be liable for damages when acting in the performance of their duties under this act.

(b) Board members and employees shall be defended by the Attorney General in regard to any civil litigation filed against them based on the performance of their official duties under this act.

Section 6. At the initial meeting of the board and each time a new member is appointed to the board, the members of the board shall select from among their members a president to preside over meetings of the board and a vice president to preside in the absence of the chair and a secretary.

Section 7. (a) There is hereby created in the State Treasury for the use of the Alabama Professional Bail Bonding Board a fund to be known as the Alabama Bail Bond Board Fund.

(b) All application and license fees, penalties, fines, and any other fees or funds collected by the board under this act are to be deposited in this fund and used only to carry out the operations of the board, but funds in excess of the amount needed to pay the reasonable and necessary operating costs of the board shall be reported to the Legislature on an annual basis and any excess funds may, thereafter, be paid to the General Fund.

(c) For the purpose of carrying out the objectives of this act and for the exercise of the powers granted in this act, the Alabama Professional Bail Bonding Board may direct the disbursement of the funds from the Alabama Bail Bond Board Fund necessary to cover reasonable and necessary operating costs and board member compensation and expenses as provided by this act, which shall be paid on warrant of the Comptroller upon certificate or voucher of the secretary of the board, approved by the president or vice president of the board. Funds may not be withdrawn or expended except as budgeted and allotted according to the provisions of Article 4 of Chapter 4 of Title 41, Code of Alabama 1975.

Section 8. (a) The Alabama Professional Bail Bonding Board may adopt rules necessary to implement this act and accomplish its objectives subject to the Alabama Administrative Procedure Act.

(b) The board may adopt and establish canons of ethics and minimum acceptable professional standards of practice for licensees within any rules that it adopts.

(c) The board may hire personnel necessary or as advisable to carry out the purposes of this act. With the exception of the Executive Director, all personnel shall be subject to the provisions of the state Merit System Act.

(d) The Attorney General shall provide legal services to the board and its employees in connection with official duties and actions of the board.

Section 9. (a) The board shall establish regular and special meetings for the purpose of transacting its business as provided by rules adopted by the board. Notice of board meetings shall comply with the Alabama Open Meetings Act.

(b) A majority of the board shall constitute a quorum at any meeting of the board.

Section 10. (a) Except as otherwise provided in this act, it shall be unlawful for any person to act as a professional bondsman or recovery agent without first obtaining a license from the board, but professional surety bondsman shall obtain a license from the Department of Insurance and shall comply with all licensing requirements issued by the Department of Insurance.

(b) A violation of subsection (a) is a Class A misdemeanor.

(c) Each person licensed in accordance with this act shall designate to the board a physical address where his or her records are to be kept.

Section 11. An application and all information on an application for licensure as a professional bondsman shall be treated as confidential and shall be filed with the board on forms prescribed by the board. The application shall include all of the following information of the applicant:

(1) His or her full name.

(2) His or her date of birth.

(3) All residences during the immediate past five years.

(4) All employment or occupations engaged in during the immediate past five years.

(5) A list of convictions and pending charges involving a felony or misdemeanor in any jurisdiction.

Section 12. Each individual applicant shall meet all of the following criteria, demonstrating that he or she:

(1) Is at least 21 years of age.

(2) Has not been declared by any court of competent jurisdiction incompetent by reason of mental defect or disease unless a court of competent jurisdiction has subsequently declared the applicant competent.

(3) Has not been convicted of a crime of moral turpitude, with the board having the final determination on the interpretation of moral turpitude.

(4) Has not been convicted of a felony crime.

Section 13. (a)(1) If an application for a license is denied, the board shall notify the applicant in writing and specify the grounds for denial. If the grounds are subject to correction by the applicant, the notice shall so state and specify a reasonable period of time within which the applicant shall make the required correction.

(2) The applicant may submit an application for reconsideration to the board within 30 days from the date of receipt of denial.

(b) The board shall issue a license to all licensees that shall be at least 8" x 10" in size and shall be displayed on a wall of the workplace of the licensee. This license shall be deemed property of the state and subject to forfeiture to the state upon revocation.

(c) All licenses issued or renewed under this act shall be valid for a period from the date of issuance until October 31.

Section 14. (a) The board shall issue to every bondsman licensee an identification card, which shall be issued in credit card size, be permanently laminated, and contain the following information of the licensee:

(1) Name.

(2) Photograph.

(3) Bondsman's license number.

(4) Expiration date of license.

(b) The identification card shall be carried on the person of the licensee when engaged in the activities of the licensee.

Section 15. Making a false statement to the board shall be punishable by a civil penalty not to exceed one thousand dollars ($1,000) and assessment of the maximum application fee.

Section 16. (a) The board may suspend, revoke, or refuse to issue or renew any license issued by it upon finding that the holder or applicant has committed any of the following acts:

(1) A violation of this act or any rule promulgated pursuant to this act.

(2) Fraud, deceit, or misrepresentation regarding an application or license.

(3) Knowingly and willfully making a material misstatement in connection with an application for a license or renewal.

(4) A conviction by a court of competent jurisdiction of a felony.

(5) A conviction by a court of competent jurisdiction of a Class A misdemeanor, if the board finds that the conviction reflects unfavorably on the fitness of the person for the license.

(6) The commission of any act which would have been cause for refusal to issue the license or identification card had it existed and been known to the board at the time of issuance.

(b) A license may be suspended for the remaining license period and renewed during any period in which the license was suspended.

Section 17. A licensee may not be required to obtain any authorization of license, or pay any other license fee or tax, in any municipality, county, or other political subdivision of this state to engage in any activity regulated under this act.

Section 18. The Administrative Procedure Act shall govern all matters and procedures respecting the hearing and judicial overview of any contested case.

Section 19. (a) A professional bondsman or recovery agent commencing business in any judicial circuit in this state on and after January 1, 2016, shall attend a 12-hour instructional course conducted by an educational provider approved by the board and pass an examination approved by the board and administered by an educational provider approved by the board. Upon completion of the course and passage of the examination, the person shall be awarded an initial examination certificate by the board, copies of which may be submitted to the presiding circuit judge, or other judicial authority, along with the other requirements set forth in Section 15-13-159 or 15-13-160, Code of Alabama 1975. Those professional bondsmen and recovery agents doing business immediately prior to January 1, 2016, are exempt from the initial 12-hour course and examination.

(b) A professional bondsman or recovery agent making an annual filing in any circuit in this state pursuant to Section 15-13-159 or 15-13-160, Code of Alabama 1975, on and after six months of the effective date of this act shall first complete eight hours of continuing education conducted by an educational provider approved by the board. The educational provider approved by the board shall provide the board with the name of all professional bondsmen or recovery agents completing eight hours of continuing education. Upon completion of the eight hours of continuing education, the person shall request issuance of an annual continuing education certificate from the board, copies of which may be submitted to the presiding circuit judge along with the other requirements set forth in Section 15-13-159 or 15-13-160, Code of Alabama 1975.

(c) The 12-hour instructional course, examination, or continuing education courses shall be taught or sponsored by an educational provider approved by the board, which must apply annually for authority to offer such examination or courses.

(d) A list of approved course providers will be published on the board website.

(e) The cost of the 12-hour course shall be set by the approved course provider but shall not exceed five hundred dollars ($500) per course. Upon completion of the 12-hour course, the approved course provider shall issue a 12-hour course completion certificate in a form approved by the board. This completion certificate must be presented to the board in order to take the introductory examination. A 12-hour course completion certificate shall be valid for a period of 12 months.

(f) The cost of continuing education courses shall be set by the approved course provider but shall not exceed seventy-five dollars ($75) per hour. Any fee required to be paid by a course provider for reporting continuing education course completion to the board may be added to the maximum charges provided in this subsection.

(g) Each professional bondsman and recovery agent must renew his or her certification with the board by completing the eight hours of approved continuing education prior to November 1 each year. Late renewal within the next 12 months may be had by completing the eight hours of continuing education and paying a renewal license fee of twice the amount otherwise required. If a professional bondsman or recovery agent fails to renew a certification for a 12-month period, the professional bondsman or recovery agent will be required to take the initial 12-hour course and examination to again become certified.

(h) The board shall set the fees to be paid to the board in the administration of this section, not to exceed the amounts set forth below:

(1) Examination fee, a nonrefundable fee to be paid to take the examination and for the issuance of the initial examination certificate, per examination attempt: $125.

(2) Annual continuing education renewal certificate fee, to be paid to receive the annual continuing education certificate: $50.

(i) The board shall adopt rules necessary to carry out this section.

Section 20. No criminal or civil action taken under this act precludes a prosecution or action under any other law of this state.

Section 21. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 22. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Bail Bonds

Bondsmen

Law Enforcement

Probation and Parole

Insurance Department

Licenses and Licensing

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