WEST virginia Legislature
2017 regular session
By
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to the Committee on Banking and Insurance then the Judiciary.
A BILL to amend and reenact
§51-10-1 and §51-10-8 of the Code of West Virginia, as amended, all relating to
requiring the Insurance Commissioner to regulate professional bondsmen.
Be it enacted by the
Legislature of West Virginia:
That §51-10-1 and §51-10-8
of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to
read as follows:
ARTICLE 10. PROFESSIONAL
BONDSMEN IN CRIMINAL CASES.
§51-10-1. Definitions.
The words "bonding
business" as used in this article mean the business of becoming surety for
compensation upon bonds in criminal cases in the State of West Virginia, and
the word "bondsman" means any person or corporation engaged either as
principal or as agent, clerk, or representative of another in such business.
When used in this
article:
(1) "Bonding
business" means the business of becoming surety for compensation upon
bonds in criminal cases;
(2) "Bail
bondsman" means any person engaged in the bonding business that has
satisfied the requirements for being a property and casualty insurance producer
as set forth by the Insurance Commission;
(3) “Commissioner” means
the Insurance Commissioner;
(4) “Insurer” means any
domestic, foreign or alien surety company which has been qualified generally to
transact surety business; and
(5) “Self-insurer” means
any person engaged in the bonding business as a bail bondsman who pledges his
or her own property as collateral for the bonds on which they serve as surety
for compensation.
§51-10-8. Qualifications
of bondsmen; rules to be prescribed by Supreme Court of Appeals; lists of
agents to be furnished; renewal of authority to act; false swearing Insurance
Commissioner.
(a) The Supreme Court of
Appeals shall, under reasonable rules, specify the qualifications of persons
and corporations applying for authority to engage in the bonding business in
criminal cases in the State of West Virginia, and the terms and conditions upon
which the business may be carried on. After September 1, 2004, no person or
corporation may, either as principal, or as agent, clerk, or representative of
another, engage in the bonding business in any court regularly exercising
criminal jurisdiction until qualified pursuant to the rules. The Supreme Court
of Appeals, in making the rules, and in granting authority to persons to engage
in the bonding business, shall take into consideration both the financial
responsibility and the moral qualities of the person so applying, and no person
may be permitted to engage, either as principal or agent, in the business of
becoming surety upon bonds for compensation in criminal cases, who has ever
been convicted of any offense involving moral turpitude, or who is not known to
be a person of good moral character. The court shall require every person
qualifying to engage in the bonding business as principal to file with the
court a list showing the name, age, and residence of each person employed by
the bondsman as agent, clerk, or representative in the bonding business, and
require an affidavit from each of the persons stating that the person will
abide by the terms and provisions of this article. The court shall require the
authority of each of the persons to be renewed from time to time at periods the
court may by rule provide. Before the authority may be renewed the court shall
require from each of the persons an affidavit that since his or her previous
qualifications to engage in the bonding business he or she has abided by the
provisions of this article, and any person swearing falsely in any of the
affidavits is guilty of false swearing.
(b) Persons authorized
to engage in the bonding business in criminal cases in the State of West
Virginia on the effective date of the amendments made to this section during
the regular session of the Legislature in 2004 may continue to engage in the
business until September 1, 2004.
(a) The commissioner
shall propose for legislative promulgation, rules he or she considers necessary
to carry out the intent, the administration and enforcement of this article,
which rules shall be promulgated in accordance with article three, chapter
twenty-nine-a of this code.
(b) The rules shall specify
the qualifications persons must have when applying for authority to engage in
the bonding business in criminal cases in West Virginia, and the terms and conditions
upon which the business may be carried on.
(c) The commissioner, in
making the rules, and in granting authority to persons to engage in the bonding
business, shall take into consideration both the financial responsibility and
the moral qualities of the person applying, and no person may be authorized to
engage, either as principal or agent, in the business of becoming surety upon
bonds for compensation in criminal cases, who has ever been convicted of any
offense involving moral turpitude, or who is not known to be a person of good
moral character.
(d) The applicant shall
provide a qualifying power of attorney from an insurer or deliver a mortgage or
lien on real property or negotiable instruments, upon which he or she may
provide bail bonds equivalent to two times the amount of the collateral. The
limitations do not apply where a qualified power of attorney is provided by a
regulated insurer or surety company.
(e) The applicant shall
provide a criminal background check summary which displays the moral qualities
of the person so applying.
(f) The commissioner
shall require every person authorized to engage in the bonding business as
principal to file with the court a list showing the name, age, and residence of
each person employed by the bondsman as agent, clerk, or representative in the
bonding business, and require an affidavit from each of the persons stating
that the person will abide by the terms and provisions of this article.
(g) (1) The commissioner
shall require a person authorized as a bail bondsman to renew every three years
and to file an affidavit stating that since his or her previous authorization
to engage in the bonding business he or she has abided by the provisions of
this article.
(2) A person swearing
falsely in an affidavit required by this section is guilty of false swearing.
(3) A person seeking to
renew his or her authorization to engage in the bonding business is required to
submit to the property and casualty licensing procedures for a second time,
unless he or she has voluntarily terminated his or her authorization to engage
in the bonding business.
(h) A person operating
as a self- insured producer shall provide a monthly report indicating:
(1) The total number of
bail bonds provided in the preceding month; and
(2) The value of those
bonds and the total amount of outstanding collateral remaining upon which bonds
may be secured. If the total value of
bonds exceeds two times the value of the collateral, the bondsman shall cease
operating until the following quarter when he or she provides a report to the
commissioner indicating unencumbered collateral exists to secure the bonds
provided by him or her.
(i) The commissioner
shall furnish an alphabetical list of all authorized bail bondsmen to each
place of detention.
(j) After September 1,
2017, no person may, either as principal, or as agent, clerk, or representative
of another, engage in the bonding business in any court regularly exercising
criminal jurisdiction until authorized pursuant to the rules.
NOTE: The purpose of this bill is
to provide for the regulation of the bail bondsmen business by the Insurance
Commissioner.
Strike-throughs indicate language that
would be stricken from a heading or the present law and underscoring indicates
new language that would be added.