House Bill hb1327e1

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                                          HB 1327, First Engrossed



  1                      A bill to be entitled

  2         An act relating to bail bond agents; renaming

  3         ch. 648, F.S.; creating s. 648.24, F.S.;

  4         providing a declaration of public policy;

  5         amending s. 648.25, F.S.; deleting and revising

  6         definitions; amending s. 648.27, F.S.;

  7         requiring managing general agents and certain

  8         representatives of entities to be licensed as

  9         bail bond agents; creating s. 648.275, F.S.;

10         requiring certain persons to be licensed as

11         bail bond agents; providing for suspension of

12         operations for noncompliance; providing for

13         issuance of temporary permits; amending s.

14         648.29, F.S.; revising provisions relating to

15         build-up funds; requiring certain moneys to be

16         maintained in specified federally approved

17         accounts; requiring insurers to provide certain

18         financial information to bail bond agents and

19         agencies; amending s. 648.30, F.S.; revising

20         provisions relating to licensure and

21         appointment of bail bond agents; deleting

22         references to runners and including references

23         to entities; amending s. 648.34, F.S.; revising

24         requirements for qualification as a bail bond

25         agent; deleting references to runners; amending

26         s. 648.355, F.S.; revising provisions relating

27         to requirements for issuance of temporary

28         limited licenses for limited surety and

29         professional bail bond agents; requiring

30         supervising bail bond agents to certify

31         employment information of temporary bail bond


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                                          HB 1327, First Engrossed



  1         agents to the Department of Insurance;

  2         providing a penalty; amending s. 648.36, F.S.;

  3         requiring persons licensed under ch. 648, F.S.,

  4         to maintain certain records; revising a

  5         provision relating to access to certain records

  6         by the public; amending s. 648.381, F.S.;

  7         requiring mandatory classroom instruction prior

  8         to reexamination for applicants under certain

  9         circumstances; amending s. 648.382, F.S.;

10         requiring additional information prior to

11         appointment of bail bond agents and temporary

12         bail bond agents; deleting references to

13         runners; amending s. 648.385, F.S.; deleting an

14         obsolete provision; amending s. 648.386, F.S.;

15         increasing the required number of hours of

16         continuing education; increasing the required

17         number of years' experience for approval as a

18         supervising instructor; creating s. 648.387,

19         F.S.; requiring designation of a primary bail

20         bond agent and notification thereof to the

21         department; authorizing the department to

22         suspend or revoke licenses under certain

23         circumstances; amending s. 648.388, F.S.;

24         requiring additional information upon

25         appointment of a managing general agent;

26         providing requirements for maintenance of

27         records and location of office; amending s.

28         648.44, F.S.; adding specified prohibited

29         activities; deleting references to runners;

30         amending s. 648.441, F.S.; establishing a fine

31         for furnishing supplies to an unlicensed bail


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                                          HB 1327, First Engrossed



  1         bond agent; amending s. 648.442, F.S.; revising

  2         provisions relating to collateral security;

  3         amending s. 648.4425, F.S.; revising provisions

  4         relating to informational notices to include a

  5         statement of surrender and providing conditions

  6         therefor; amending s. 648.45, F.S.; providing

  7         additional causes for denial, suspension,

  8         revocation, or refusal to renew a license or

  9         appointment issued under ch. 648, F.S.;

10         amending s. 648.52, F.S.; increasing fines for

11         violations of ch. 648, F.S.; creating s.

12         648.525, F.S.; authorizing the department to

13         conduct certain proceedings and to impose civil

14         assessments; amending s. 648.571, F.S.;

15         revising provisions relating to requests for

16         discharge of bonds; authorizing a bail bond

17         agent to charge certain fees; increasing a fine

18         for violation of s. 648.571, F.S.; amending ss.

19         624.501, 648.31, 648.383, 648.384, 648.39,

20         648.41, 648.50, and 843.021, F.S.; conforming

21         language; amending s. 624.523, F.S.; deleting

22         an obsolete reference and conforming language;

23         repealing s. 648.37, F.S., relating to

24         qualifications for runners; providing for

25         severability; providing an effective date.

26

27  Be It Enacted by the Legislature of the State of Florida:

28

29         Section 1.  Chapter 648, Florida Statutes, entitled

30  "Bail Bond Agents and Runners," is renamed "Bail Bond Agents."

31


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                                          HB 1327, First Engrossed



  1         Section 2.  Section 648.24, Florida Statutes, is

  2  created to read:

  3         648.24  Declaration of public policy.--It is the public

  4  policy of this state and the intent of the Legislature that a

  5  bond for which fees or premiums are charged must be executed

  6  by a bail bond agent licensed pursuant to this chapter in

  7  connection with the pretrial or appellate release of a

  8  criminal defendant and shall be construed as a commitment by

  9  and obligation upon the bail bond agent to ensure that the

10  defendant appears at all subsequent criminal proceedings.

11         Section 3.  Section 648.25, Florida Statutes, is

12  amended to read:

13         648.25  Definitions.--As The following words when used

14  in this chapter, the term have the meanings respectively

15  ascribed to them in this section:

16         (1)  "Bail bond agency" means:

17         (a)  The building where a licensee maintains an office

18  and where all records required by ss. 648.34 and 648.36 are

19  maintained; or

20         (b)  An entity that:

21         1.  Charges a fee or premium to release an accused

22  defendant or detainee from jail; or

23         2.  Engages in or employs others to engage in any

24  activity that may be performed only by a licensed and

25  appointed bail bond agent.

26         (2)(1)  "Bail bond agent" means a limited surety agent

27  or a professional bail bond agent as hereafter defined.

28         (3)(2)  "Department" means the Department of Insurance.

29         (4)(3)  "Managing general agent" means any individual,

30  partnership, association, or corporation appointed or employed

31  by an insurer to supervise or manage the bail bond business


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                                          HB 1327, First Engrossed



  1  written in this state by limited surety agents appointed by

  2  the insurer.

  3         (5)(4)  "Insurer" means any domestic, foreign, or alien

  4  surety company which has been authorized to transact surety

  5  business in this state.

  6         (5)  "Agency" means any business location at which a

  7  licensed and appointed bail bond agent engages in any activity

  8  or employs individuals to engage in any activity which by law

  9  may be performed only by a licensed and appointed bail bond

10  agent.

11         (6)  "Limited surety agent" means any individual

12  appointed by an insurer by power of attorney to execute or

13  countersign bail bonds in connection with judicial proceedings

14  who receives or is promised money or other things of value

15  therefor.

16         (7)  "Primary bail bond agent" means a licensed bail

17  bond agent who is responsible for the overall operation and

18  management of a bail bond agency location and whose

19  responsibilities include hiring and supervising all

20  individuals within that location. A bail bond agent may be

21  designated as primary bail bond agent for only one bail bond

22  agency location.

23         (8)(7)  "Professional bail bond agent" means any person

24  who pledges United States currency, United States postal money

25  orders, or cashier's checks as security for a bail bond in

26  connection with a judicial proceeding and receives or is

27  promised therefor money or other things of value.

28         (8)  "Runner" means a person employed by a bail bond

29  agent, insurer, or managing general agent for the purpose of

30  assisting the bail bond agent in presenting the defendant in

31  court when required or employed by the bail bond agent to


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                                          HB 1327, First Engrossed



  1  assist in the apprehension and surrender of the defendant to

  2  the court or keeping the defendant under necessary

  3  surveillance.  This does not affect the right of a bail bond

  4  agent or insurer to hire counsel or to obtain the assistance

  5  of law enforcement officers.

  6         (9)  "Temporary bail bond agent" means a person

  7  employed by a bail bond agent or agency, insurer, or managing

  8  general agent, and such licensee has shall have the same

  9  authority as conferred and authorized by law upon a licensed

10  bail bond agent, including which shall include presenting

11  defendants in court;, apprehending, arresting, and

12  surrendering defendants to the proper authorities, while

13  accompanied by a supervising bail bond agent or an agent from

14  the same agency; and keeping defendants under necessary

15  surveillance.; However, a temporary licensee may not shall not

16  have the authority to execute or sign bonds, handle collateral

17  receipts, or deliver bonds to appropriate authorities. A

18  temporary licensee may not operate an agency or branch agency

19  separate from the location of the supervising bail bond agent,

20  managing general agent, or insurer by whom the licensee is

21  employed. This does not affect the right of a bail bond agent

22  or insurer to hire counsel or to obtain the assistance of law

23  enforcement officers.

24         Section 4.  Paragraph (b) of subsection (5) and

25  subsection (8) of section 648.27, Florida Statutes, are

26  amended to read:

27         648.27  Licenses and appointments; general.--

28         (5)

29         (b)  The license of a temporary bail bond agent or

30  runner shall continue in force until suspended, revoked, or

31  otherwise terminated.


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                                          HB 1327, First Engrossed



  1         (8)  An application for a managing general agent's

  2  license must be made by an insurer who proposes to employ or

  3  appoint an individual, partnership, association, or

  4  corporation as a managing general agent. Such application

  5  shall contain the information required by s. 626.744, and the

  6  applicant shall pay the same fee as a managing general agent

  7  licensed pursuant to that section. Any individual licensed and

  8  appointed as a managing general agent shall also be licensed

  9  as a bail bond agent and, in the case of an entity, at least

10  one owner, officer, or director at each office location shall

11  be licensed as a bail bond agent.

12         Section 5.  Section 648.275, Florida Statutes, is

13  created to read:

14         648.275  Bond agency; ownership requirements.--

15         (1)  A person may not own, control, or otherwise have a

16  pecuniary interest in a bail bond agency unless such

17  individual is a licensed and appointed bail bond agent. Any

18  agency that is not in compliance with this subsection shall be

19  subject to the issuance of an immediate final order of

20  suspension of all operations until the agency achieves

21  compliance.

22         (2)  If the owner of a bail bond agency dies or becomes

23  mentally incapacitated, a personal representative or legal

24  guardian may be issued a temporary permit to manage the

25  affairs of the bail bond agency. Such person must appoint or

26  maintain the appointment of a primary bail bond agent, as

27  provided in s. 648.387, and may not engage in any activities

28  as a licensed bail bond agent but must comply with s. 648.387

29  during the administration of the estate or guardianship. A

30  temporary permit is valid for a maximum of 24 months.

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                                          HB 1327, First Engrossed



  1         (3)  Application for a temporary permit must be made by

  2  the personal representative or legal guardian upon statements

  3  and affidavits filed with the department on forms prescribed

  4  and furnished by the department. The applicant must meet the

  5  qualifications for licensure as a bail bond agent, except for

  6  the residency, examination, education, and experience

  7  requirements.

  8         Section 6.  Section 648.29, Florida Statutes, is

  9  amended to read:

10         648.29  Build-up funds posted by bail bond agent or

11  bail bond agency.--

12         (1)  All build-up funds or moneys pledged to be used to

13  indemnify the insurer by the posted by a bail bond agent or

14  bail bond agency managing general agent, either with the

15  insurer or managing general agent representing such insurer,

16  must be held maintained in an individual build-up trust

17  account for the bail bond agent or bail bond agency and

18  maintained in an FDIC-approved or an FSLIC-approved by the

19  insurer or the managing general agent in a bank or savings and

20  loan association in this state jointly in the name of the bail

21  bond agent or bail bond agency and the insurer surety or

22  managing general agent or in trust for the bail bond agent or

23  bail bond agency by the insurer. The build-up fund surety or

24  managing general agent and is open to inspection and

25  examination by the department at all times. An accounting of

26  all such funds shall be maintained which designates the

27  amounts collected on each bond written.

28         (2)  Build-up funds may not exceed 40 percent of the

29  premium as established by the agent's contract agreement with

30  the insurer or managing general agent. Build-up funds received

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                                          HB 1327, First Engrossed



  1  shall be immediately deposited to the build-up trust account.

  2  Interest on such accounts shall accrue to the bail bond agent.

  3         (3)  Build-up funds are maintained as a trust fund

  4  created on behalf of a bail bond agent or bail bond agency,

  5  held by the insurer in a fiduciary capacity to be used by the

  6  insurer to indemnify the insurer for losses and any other

  7  agreed-upon costs related to a bail bond executed by the bail

  8  bond agent. The build-up funds are the sole property of the

  9  bail bond agent or bail bond agency and, upon termination of

10  the bail bond agent's or bail bond agency's contract and

11  discharge of open bond liabilities on the bonds written,

12  build-up funds are due and payable to the bail bond agent or

13  bail bond agency not later than 6 months after final discharge

14  of open bond liabilities.

15         (4)  Each insurer authorized to write bail bonds in

16  this state and each managing general agent must furnish to the

17  department a certified copy of a statement listing each

18  build-up trust account and the balance therein by March 1 of

19  each year.

20         (5)  Insurers shall provide all bank statements of

21  build-up fund accounts to their bail bond agents and bail bond

22  agencies.

23         Section 7.  Section 648.30, Florida Statutes, is

24  amended to read:

25         648.30  Licensure and appointment required.--

26         (1)  A person or entity may not act in the capacity of

27  a bail bond agent or, temporary bail bond agent, or runner or

28  perform any of the functions, duties, or powers prescribed for

29  bail bond agents or temporary bail bond agents runners under

30  this chapter unless that person or entity is qualified,

31  licensed, and appointed as provided in this chapter.


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                                          HB 1327, First Engrossed



  1         (2)  No person or entity shall represent himself or

  2  herself to be a bail enforcement agent, bounty hunter, or

  3  other similar title in this state.

  4         (3)  No person or entity, other than a certified law

  5  enforcement officer, shall be authorized to apprehend, detain,

  6  or arrest a principal on a bond, wherever issued, unless that

  7  person is qualified, licensed, and appointed as provided in

  8  this chapter, is or licensed as a bail bond agent, or

  9  possesses an equivalent license issued by the state where the

10  bond was written.

11         (4)  Any person or entity who violates any provision of

12  this section commits a felony of the third degree, punishable

13  as provided in s. 775.082, s. 775.083, or s. 775.084.

14         Section 8.  Section 648.31, Florida Statutes, is

15  amended to read:

16         648.31  Appointment taxes and fees.--The department

17  shall collect in advance all appointment taxes and fees for

18  the issuance of any appointment to a bail bond agent or,

19  temporary bail bond agent, or runner, as provided in s.

20  624.501.

21         Section 9.  Paragraphs (a) and (b) of subsection (2)

22  and subsection (6) of section 648.34, Florida Statutes, are

23  amended to read:

24         648.34  Bail bond agents; qualifications.--

25         (2)  To qualify as a bail bond agent, it must

26  affirmatively appear at the time of application and throughout

27  the period of licensure that the applicant has complied with

28  the provisions of s. 648.355 and has obtained a temporary

29  license pursuant to such section and:

30

31


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                                          HB 1327, First Engrossed



  1         (a)  The applicant is a natural person who has reached

  2  the age of 18 years and has obtained a high school diploma or

  3  its equivalent.

  4         (b)  The applicant is a United States citizen or legal

  5  alien and a bona fide resident of this state. An individual

  6  who is a bona fide resident of this state shall be deemed to

  7  meet the residence requirement of this paragraph,

  8  notwithstanding the existence, at the time of application for

  9  license, of a license in the applicant's name on the records

10  of another state as a resident licensee of such other state,

11  if the applicant furnishes a letter of clearance satisfactory

12  to the department that his or her resident licenses have been

13  canceled or changed to a nonresident basis and that he or she

14  is in good standing.

15         (6)  The provisions of s. 112.011 do not apply to bail

16  bond agents or runners or to applicants for licensure as bail

17  bond agents or runners.

18         Section 10.  Subsections (1), (3), (6), and (8) of

19  section 648.355, Florida Statutes, are amended to read:

20         648.355  Temporary limited license as limited surety

21  agent or professional bail bond agent; pending examination.--

22         (1)  The department may, in its discretion, issue a

23  temporary license as a limited surety agent or professional

24  bail bond agent, subject to the following conditions:

25         (a)  The applicant is a natural person at least 18

26  years of age and has obtained a high school diploma or its

27  equivalent.

28         (b)  The applicant is a United States citizen or legal

29  alien and a bona fide resident of this state. An individual

30  who is a bona fide resident of this state shall be deemed to

31  meet the residence requirement of this paragraph,


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                                          HB 1327, First Engrossed



  1  notwithstanding the existence, at the time of application for

  2  temporary license, of a license in the individual's name on

  3  the records of another state as a resident licensee of such

  4  other state, if the applicant furnishes a letter of clearance

  5  satisfactory to the department that the individual's resident

  6  licenses have been canceled or changed to a nonresident basis

  7  and that the individual is in good standing.

  8         (c)  The applicant is a person of high character and

  9  approved integrity and has never been convicted of or pleaded

10  guilty or no contest to a felony, a crime involving moral

11  turpitude, or a crime punishable by imprisonment of 1 year or

12  more under the law of any state, territory, or country,

13  whether or not a judgment or conviction is entered.

14         (d)  Within 4 years prior to the date of application

15  for a temporary license, the applicant has successfully

16  completed a basic certification course in the criminal justice

17  system, consisting of not less than 120 80 hours of classroom

18  instruction, has obtained a passing grade of 80 percent or

19  higher, and has successfully completed a correspondence course

20  for bail bond agents approved by the department.

21         (e)  The applicant must be employed at the time of

22  licensure application, and, at all times throughout the

23  existence of the temporary license, by only one licensed and

24  appointed supervising bail bond agent, managing general agent,

25  or authorized insurer, who supervises the work of the

26  applicant and is responsible for the licensee's conduct in the

27  bail bond business. The applicant shall be appointed by the

28  same insurer or insurers as the supervising bail bond agent.

29  The supervising bail bond agent shall on a monthly basis

30  certify to the department under oath, on a form prescribed by

31  the department, the names and hours worked each week of all


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                                          HB 1327, First Engrossed



  1  temporary bail bond agents so employed. Filing a false

  2  certification is grounds for the immediate suspension of the

  3  license and the imposition of an administrative fine of

  4  $5,000.

  5         (f)  The application must be accompanied by an

  6  affidavit under oath verifying proposed a certificate of

  7  employment and a report as to the applicant's integrity and

  8  moral character on a form prescribed by the department and

  9  executed by the proposed employer.

10         (g)  The applicant shall file with the department

11  statements by a least three reputable citizens who are

12  residents of the same counties in which the applicant proposes

13  to engage as a temporary licensee.

14         (h)  The applicant's employer is responsible for the

15  bail bonding acts of any licensee under this section.

16         (3)  The temporary license shall be effective for a

17  period of 18 months 1 year, subject to earlier termination at

18  the request of the employer or if suspended or revoked by the

19  department.

20         (6)  After licensure as a temporary licensee for at

21  least 12 6 months, such licensee may file an application for

22  and become eligible for a regular bail bond agent's license

23  based on the licensee's experience in the bail bond business

24  and education pursuant to paragraph (1)(d) and, if otherwise

25  qualified, take the required bail bond agent's licensure

26  examination. The applicant and the supervising bail bond agent

27  shall each file an affidavit under oath, on a form prescribed

28  by the department, verifying the required employment of the

29  temporary bail bond agent prior to issuance of the license.

30         (8)(a)  Under the temporary license, the licensee shall

31  have the same authority conferred and authorized by the laws


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                                          HB 1327, First Engrossed



  1  of this state upon a licensed bail bond agent which shall

  2  include:

  3         1.  Presenting defendants in court.,

  4         2.  Apprehending, arresting, and surrendering

  5  defendants to the proper authorities, during which process the

  6  licensee shall be physically accompanied by his or her

  7  supervising bail bond agent or a licensed and appointed bail

  8  bond agent from the same bail bond agency. and

  9         3.  Keeping defendants under necessary surveillance.;

10  however,

11         (b)  A temporary licensee shall not have the authority

12  to:

13         1.  Execute or sign bonds;,

14         2.  Handle collateral receipts;, or

15         3.  Deliver bonds to appropriate authorities; or. A

16  temporary licensee may not

17         4.  Operate an agency or branch agency separate from

18  the location of the supervising bail bond agent, managing

19  general agent, or insurer by whom the licensee is employed.

20         Section 11.  Section 648.36, Florida Statutes, is

21  amended to read:

22         648.36  Bail bond agent's records.--Every person

23  licensed under this chapter bail bond agent must maintain in

24  his or her office such records of bail bonds executed or

25  countersigned by him or her to enable the department public to

26  obtain all necessary information concerning such bail bonds

27  for at least 3 years after the liability of the surety has

28  been terminated. Such records shall be open to examination,

29  inspection, and photographic reproduction by the department or

30  an authorized representative of the insurer or managing

31  general agent, or agents of the department, at all times, and


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                                          HB 1327, First Engrossed



  1  the department may at any time require the licensee to furnish

  2  to it, in such manner or form as it requires, any information

  3  concerning the bail bond business of such licensee.

  4         Section 12.  Section 648.381, Florida Statutes, is

  5  amended to read:

  6         648.381  Reexamination.--Any applicant for licensure

  7  who has taken an examination and failed to make a passing

  8  grade, has failed to appear for the examination, or has failed

  9  to take or complete the examination at the time and place

10  specified in the notice of the department may take additional

11  examinations upon the filing of an application for

12  reexamination, with applicable fees. The failure of an

13  applicant to pass an examination or the failure to appear for

14  the examination or to take or complete the examination does

15  not preclude the applicant from taking subsequent

16  examinations. If an applicant fails the examination three

17  times, he or she shall enroll in and complete the 120 hours of

18  classroom instruction required under s. 648.355(1)(d) for the

19  basic certification course and obtain a passing grade of 80

20  percent or higher in order to take any further examination.

21         Section 13.  Section 648.382, Florida Statutes, is

22  amended to read:

23         648.382  Appointment of bail bond agents and, temporary

24  bail bond agents, and runners; effective date of

25  appointment.--

26         (1)  Each insurer appointing a bail bond agent and each

27  insurer, managing general agent, or bail bond agent appointing

28  a temporary bail bond agent or runner in this state must file

29  the appointment with the department and, at the same time, pay

30  the applicable appointment fees and taxes. A person appointed

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                                          HB 1327, First Engrossed



  1  under this section must hold a valid bail bond agent's or,

  2  temporary bail bond agent's, or runner's license.

  3         (2)  Prior to any appointment, an appropriate officer

  4  or official of the appointing insurer in the case of a bail

  5  bond agent or an insurer, managing general agent, or bail bond

  6  agent in the case of a temporary bail bond agent or runner,

  7  must submit:

  8         (a)  A certified statement or affidavit to the

  9  department stating:

10         1.  What investigation has been made concerning the

11  proposed appointee and the proposed appointee's background.

12  and

13         2.  The appointing person's opinion to the best of his

14  or her knowledge and belief as to the moral character,

15  fitness, and reputation of the proposed appointee. and

16         (b)  An affidavit executed under oath on a form

17  prescribed by the department and signed by the proposed

18  appointee that states that no premiums are owed to any insurer

19  and the appointee is obligated to discharge all outstanding

20  forfeitures or judgments on bonds previously written. Upon the

21  failure of an appointee to satisfy or discharge such

22  forfeitures or judgments, the former insurer shall file a

23  notice with supporting documents with the appointing insurer,

24  the former agent, and the department that states, under oath,

25  that the licensee has failed to timely satisfy the forfeitures

26  and judgments on bonds written and that the insurer has

27  satisfied the forfeiture or judgment from its own funds. Upon

28  receipt of written notification and supporting documents from

29  the former insurer, the appointing insurer shall immediately

30  cancel the licensee's appointment and the licensee may only be

31  reappointed upon certification by the former insurer that all


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                                          HB 1327, First Engrossed



  1  forfeitures and judgments on bonds written by the licensee

  2  have been discharged. The appointing insurer or former agent

  3  may, within 10 days, file a petition with the department

  4  seeking relief from this provision. The filing of the petition

  5  stays the duty of the appointing insurer to cancel the

  6  appointment until such time as the department grants or denies

  7  the petition.

  8         (c)  Any other information that the department

  9  reasonably requires concerning the proposed appointee.

10         (3)  Prior to any appointment of a bail bond agent, the

11  appointing insurer must certify to the department that the

12  insurer will be bound by the acts of the bail bond agent

13  acting within the scope of his or her appointment, and, in the

14  case of a temporary bail bond agent or runner, the appointing

15  insurer, managing general agent, or bail bond agent, as the

16  case may be, must certify to the department that he or she

17  will supervise the temporary bail bond agent's or runner's

18  activities.

19         (4)  Each appointing insurer, managing general agent,

20  or bail bond agent must advise the department in writing

21  within 5 days after obtaining knowledge or receiving notice

22  that an appointee has been arrested for or charged with or has

23  been found guilty of, or has pled guilty or nolo contendere

24  to, a felony or a crime punishable by imprisonment of 1 year

25  or more under the law of the United States, under the law of

26  any state, or under the law of any other country, without

27  regard to whether the judgment of conviction has been entered

28  by the court having jurisdiction over such cases.

29         (5)  A list of current appointments must be submitted

30  to the department each month but in no case later than 45 days

31


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                                          HB 1327, First Engrossed



  1  after the date of appointment. All appointments are effective

  2  as of the date indicated on the appointment form.

  3         Section 14.  Section 648.383, Florida Statutes, is

  4  amended to read:

  5         648.383  Renewal, continuation, reinstatement, and

  6  termination of appointment; bail bond agents and runners.--

  7         (1)  The appointment of a bail bond agent or runner

  8  shall continue in force unless suspended, revoked, or

  9  otherwise terminated, subject to a renewal request filed by

10  the appointing entity in the appointee's birth month and every

11  24 months thereafter. A renewal request must be filed with the

12  department along with payment of the renewal appointment fee

13  and taxes as prescribed in s. 624.501.

14         (2)  Each appointing person must file with the

15  department the lists, statement, and information as to each

16  bail bond agent or runner whose appointment is being renewed,

17  accompanied by payment of the applicable renewal fees and

18  taxes as prescribed in s. 624.501, by a date established by

19  the department following the month during which the

20  appointment will expire.

21         (3)  An appointment may be renewed by the department

22  without penalty if the information required under subsection

23  (2) is received by the department on or prior to the date

24  established by the department for renewal, and such

25  appointment is effective on the day the appointment was

26  scheduled to expire.

27         (4)  If the information required under subsection (2)

28  is received by the department after the date established by

29  the department for renewal, the appointment may be renewed by

30  the department if an additional appointment, continuation, and

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                                          HB 1327, First Engrossed



  1  reinstatement fee accompanies the application as required

  2  under s. 624.501.

  3         Section 15.  Section 648.384, Florida Statutes, is

  4  amended to read:

  5         648.384  Effect of expiration of appointment; bail bond

  6  agents and runners.--

  7         (1)  Upon the expiration of any person's appointment as

  8  provided in s. 648.383, such person is without any authority

  9  to engage or attempt to engage in any activity requiring such

10  appointment.

11         (2)  If a bail bond agent fails to maintain an

12  appointment with an insurer or if a runner fails to maintain

13  an appointment with an insurer, managing general agent, or

14  bail bond agent during any 48-month period, the bail bond

15  agent or runner may not be granted a reappointment until he or

16  she qualifies as a first-time applicant.

17         Section 16.  Paragraph (a) of subsection (2) of section

18  648.385, Florida Statutes, is amended to read:

19         648.385  Continuing education required; application;

20  exceptions; requirements; penalties.--

21         (2)(a)  For compliance dates beginning in January 1997

22  and thereafter, Each person subject to the provisions of this

23  chapter must complete a minimum of 14 hours of continuing

24  education courses every 2 years in courses approved by the

25  department. Compliance with continuing education requirements

26  is a condition precedent to the issuance, continuation, or

27  renewal of any appointment subject to the provisions of this

28  chapter.

29         Section 17.  Paragraph (a) of subsection (1) and

30  paragraph (b) of subsection (4) of section 648.386, Florida

31  Statutes, are amended to read:


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                                          HB 1327, First Engrossed



  1         648.386  Qualifications for prelicensing and continuing

  2  education schools and instructors.--

  3         (1)  SCHOOLS AND CURRICULUM FOR PRELICENSING

  4  SCHOOLS.--In order to be considered for approval and

  5  certification as an approved limited surety agent and

  6  professional bail bond agent prelicensing school, such entity

  7  must:

  8         (a)1.  Offer a minimum of two 120-hour 80-hour

  9  classroom instruction basic certification courses in the

10  criminal justice system per calendar year unless a reduced

11  number of course offerings per calendar year is warranted in

12  accordance with rules promulgated by the department; or

13         2.  Offer a department-approved correspondence course

14  pursuant to department rules.

15         (4)  INSTRUCTOR'S DUTIES AND QUALIFICATIONS.--

16         (b)  In order to obtain department approval as a

17  supervising instructor, the following qualifications must be

18  met:

19         1.  During the past 15 10 years, the person must have

20  had at least 10 5 years' experience as a manager or officer of

21  a managing general agent in this state as prescribed in s.

22  648.388;

23         2.  During the past 15 10 years, the person must have

24  had at least 10 5 years' experience as a manager or officer of

25  an insurance company authorized to and actively engaged in

26  underwriting bail in this state, provided there is a showing

27  that the manager's or officer's experience is directly related

28  to the bail bond industry; or

29         3.  The person has been a licensed bail bond agent in

30  this state for at least 10 years.

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                                          HB 1327, First Engrossed



  1         Section 18.  Section 648.387, Florida Statutes, is

  2  created to read:

  3         648.387  Primary bail bond agent; required designation;

  4  duties.--

  5         (1)  The owner or operator of a bail bond agency shall

  6  designate a primary bail bond agent for each bail bond agency

  7  location and shall file with the department the name and

  8  license number of the person so designated and the address of

  9  the bail bond agency location on a form approved by the

10  department. The designation of the primary bail bond agent may

11  be changed, provided that the department is notified

12  immediately of such change. Failure to notify the department

13  within 10 working days after such change shall be grounds for

14  disciplinary action pursuant to s. 648.45.

15         (2)  The department may suspend or revoke the license

16  of the owner or operator of and the primary bail bond agent

17  for a bail bond agency if it employs, contracts with, or

18  otherwise uses the services of any person who has had a

19  license denied or any person whose license is currently

20  suspended or revoked. However, when a person has been denied a

21  license for failure to pass a required examination, he or she

22  may be employed to perform clerical or administrative

23  functions for which licensure is not required.

24         (3)  An owner, operator, or primary agent shall not

25  employ, contract with, or otherwise use the services of any

26  person in a bail bond agency who has been charged with or has

27  been found guilty of, or has pled guilty or nolo contendere

28  to, a felony or a crime punishable by imprisonment of 1 year

29  or more under the law of the United States, under the law of

30  any state, or under the law of any other country, without

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                                          HB 1327, First Engrossed



  1  regard to whether the judgment of conviction has been entered

  2  by the court having jurisdiction over such cases.

  3         (4)  A bail bond agency location may not conduct the

  4  business of surety unless a primary bail bond agent is

  5  designated at all times. Failure to designate a primary bail

  6  bond agent on a form prescribed by the department within 10

  7  working days after agency inception or change of primary bail

  8  bond agent designation constitutes a violation of this chapter

  9  and subjects the owner or operator and all licensed bail bond

10  agents at that location to discipline pursuant to s. 648.45.

11         Section 19.  Section 648.388, Florida Statutes, is

12  amended to read:

13         648.388  Insurer must appoint managing general

14  agent.--Any insurer regularly engaged in the execution of bail

15  bonds in this state shall have a managing general agent in

16  this state to supervise its agents. Upon the appointment of a

17  managing general agent, every insurer shall file with the

18  department an affidavit executed under oath by the appointee

19  certifying that the appointee does not owe any unpaid premiums

20  to any insurer and does not have any unpaid judgments or

21  forfeitures in this state or any other state. A managing

22  general agent shall maintain in this state all records

23  relating to bonds issued in this state and shall maintain an

24  office in this state.

25         Section 20.  Section 648.39, Florida Statutes, is

26  amended to read:

27         648.39  Termination of appointment of managing general

28  agents, bail bond agents and, temporary bail bond agents, and

29  runners.--

30         (1)  An insurer who terminates the appointment of a

31  managing general agent, bail bond agent, or temporary bail


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                                          HB 1327, First Engrossed



  1  bond agent, or runner shall, within 10 days after such

  2  termination, file written notice thereof with the department

  3  together with a statement that it has given or mailed notice

  4  to the managing general agent, bail bond agent, or temporary

  5  bail bond agent, or runner. Such notice filed with the

  6  department must state the reasons, if any, for such

  7  termination. Information so furnished the department is

  8  confidential and exempt from the provisions of s. 119.07(1).

  9         (2)  Each insurer shall, within 5 days after

10  terminating the appointment of any managing general agent,

11  bail bond agent, or temporary bail bond agent, or runner, give

12  written notice thereof to each clerk of the circuit court and

13  sheriff with whom such person is registered.

14         (3)  An insurer that terminates the appointment of a

15  managing general agent, bail bond agent, or temporary bail

16  bond agent, or runner may authorize such person to continue to

17  attempt the arrest and surrender of a defendant for whom a

18  surety bond had been written by the bail bond agent prior to

19  termination and to seek discharge of forfeitures and judgments

20  as provided in chapter 903.

21         Section 21.  Section 648.41, Florida Statutes, is

22  amended to read:

23         648.41  Termination of appointment of temporary bail

24  bond agents or runners.--A bail bond agent, insurer, or

25  managing general agent terminating the appointment of a

26  temporary bail bond agent or runner must, within 10 days, file

27  written notice thereof with the department, together with a

28  statement that notice has been given or mailed to the

29  temporary bail bond agent or runner. Such notice filed with

30  the department shall state the reasons, if any, for such

31


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                                          HB 1327, First Engrossed



  1  termination. Information so furnished the department is

  2  confidential and exempt from the provisions of s. 119.07(1).

  3         Section 22.  Section 648.44, Florida Statutes, is

  4  amended to read:

  5         648.44  Prohibitions; penalty.--

  6         (1)  A bail bond agent or, temporary bail bond agent,

  7  or runner may not:

  8         (a)  Suggest or advise the employment of, or name for

  9  employment, any particular attorney to represent his or her

10  principal.

11         (b)1.  Directly or indirectly solicit business in or on

12  the property or grounds of a jail, prison, or other place

13  where prisoners are confined or in or on the property or

14  grounds of any court.

15         2.  The term "solicitation" includes the distribution

16  of business cards, print advertising, or other written or oral

17  information directed to prisoners or potential indemnitors,

18  unless a request is initiated by the prisoner or a potential

19  indemnitor.

20         3.  Permissible print advertising in the jail is

21  strictly limited to a listing in a telephone directory and the

22  posting of the bail bond agency's or agent's name, address,

23  and telephone number in a designated location within the jail.

24         (c)  Initiate in-person or telephone solicitation

25  before 8 a.m. or after 9 p.m. local time, in the case of

26  domestic violence cases only, at the residence of the detainee

27  or his or her family. Any form of solicitation not otherwise

28  prohibited by this chapter shall conform to ss. 501.059(2) and

29  (4), 501.602, 501.603(11), 501.613(1), and 501.616(6).

30         (d)(c)  Wear or display any identification other than

31  the department issued or approved license or department


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                                          HB 1327, First Engrossed



  1  approved identification that includes a citation of the bail

  2  bond agent's arrest powers in or on the property or grounds of

  3  a jail, prison, or other place where prisoners are confined or

  4  in or on the property or grounds of any court.

  5         (e)(d)  Pay a fee or rebate or give or promise anything

  6  of value to a jailer, police officer, peace officer, or

  7  committing magistrate or any other person who has power to

  8  arrest or to hold in custody or to any public official or

  9  public employee in order to secure a settlement, compromise,

10  remission, or reduction of the amount of any bail bond or

11  estreatment thereof.

12         (f)(e)  Pay a fee or rebate or give anything of value

13  to an attorney in a bail bond matter, except in defense of any

14  action on a bond.

15         (g)(f)  Pay a fee or rebate or give or promise anything

16  of value to the principal or anyone in his or her behalf.

17         (h)(g)  Participate in the capacity of an attorney at a

18  trial or hearing of one on whose bond he or she is surety.

19         (i)(h)  Loiter in or about a jail, courthouse, or where

20  prisoners are confined.

21         (j)(i)  Accept anything of value from a principal for

22  providing a bail bond except the premium and transfer fee

23  authorized by the department, except that the bail bond agent

24  may accept collateral security or other indemnity from the

25  principal or another person in accordance with the provisions

26  of s. 648.442, together with documentary stamp taxes, if

27  applicable. No fees, expenses, or charges of any kind shall be

28  permitted to be deducted from the collateral held or any

29  return premium due, except as authorized by this chapter or

30  rule of the department. A bail bond agent may, upon written

31  agreement with another party, receive a fee or compensation


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                                          HB 1327, First Engrossed



  1  for returning to custody an individual who has fled the

  2  jurisdiction of the court or caused the forfeiture of a bond.

  3         (k)(j)  Write more than one power of attorney per

  4  charge on a bond, except in the case of a cosurety, unless the

  5  power of attorney expressly prohibits a cosurety.

  6         (l)(k)  Execute a bond in this state on his or her own

  7  behalf.

  8         (m)(l)  Execute a bond in this state if a judgment has

  9  been entered on a bond executed by the bail bond agent, which

10  has remained unpaid for 35 days, unless the full amount of the

11  judgment is deposited with the clerk in accordance with s.

12  903.27(5).

13         (n)(m)  Make a statement or representation to a court,

14  unless such statement or representation is under oath. Such

15  statement or representation may not be false, misleading, or

16  deceptive.

17         (o)  Attempt to collect through threat or coercion any

18  amounts due for the payment of any indebtedness related to the

19  issuance of a bail bond in violation of s. 559.72.

20         (p)  Conduct bail bond business with any person other

21  than the defendant on the grounds of the jail or courthouse

22  for the purpose of executing a bond.

23         (2)  The following persons or classes shall not be bail

24  bond agents, temporary bail bond agents, runners, or employees

25  of a bail bond agent or a bail bond business and shall not

26  directly or indirectly receive any benefits from the execution

27  of any bail bond:

28         (a)  Jailers or persons employed in any jail.

29         (b)  Police officers or employees of any police

30  department or law enforcement agency.

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                                          HB 1327, First Engrossed



  1         (c)  Committing magistrates, employees of a court, or

  2  employees of the clerk of any court.

  3         (d)  Sheriffs and deputy sheriffs or employees of any

  4  sheriff's department.

  5         (e)  Attorneys.

  6         (f)  Persons having the power to arrest or persons who

  7  have authority over or control of federal, state, county, or

  8  municipal prisoners.

  9         (3)  A bail bond agent may not sign or countersign in

10  blank any bond, give a power of attorney to, or otherwise

11  authorize, anyone to countersign his or her name to bonds

12  unless the person so authorized is a licensed and appointed

13  bail bond agent directly employed by the bail bond agent

14  giving such power of attorney.

15         (4)  A place of business, including a branch office,

16  may not be established, opened, or maintained unless it is

17  under the active full-time charge of a licensed and appointed

18  bail bond agent.

19         (5)  Except as between licensed and appointed bail bond

20  agents, a bail bond agent may not divide with others, or share

21  in, any commissions payable on account of any bail bond.

22         (6)(a)  No bail bond agency shall advertise as or hold

23  itself out to be a bail bond or surety company.

24         (b)  Any misleading or false advertisement or deceptive

25  trade practice is prohibited as provided in part IX of chapter

26  626.

27         (c)  The advertisement of reduced premium rates is

28  prohibited. Effective 90 days after the effective date of this

29  act, no bail bond agency may use a name that implies a reduced

30  rate of premium.

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                                          HB 1327, First Engrossed



  1         (d)1.  A bail bond agent's advertising shall not

  2  include statements that constitute a material

  3  misrepresentation of facts, create unjust expectations about

  4  service, or make improper comparisons.

  5         2.  Bail bond agents may not own or advertise under

  6  firm names that are false, misleading, or deceptive or use a

  7  trade name that implies connection with a government, state,

  8  or county agency.

  9         3.  A bail bond agent may not use any advertisement or

10  advertise under any name that includes the word "free."

11         4.  A bail bond agent may not advertise under a trade

12  name unless the name and address appears on the bail bond

13  agent's letterhead or business cards. Such name shall be

14  registered with the department pursuant to s. 648.421.

15         5.  A bail bond agent may not make a material

16  misrepresentation of fact or omit any material fact that makes

17  a statement materially misleading.

18         (7)  Any permissible advertising by a bail bond agent

19  or agency must include the address of record filed with the

20  department.

21         (8)(a)  A person who has been convicted of or who has

22  pleaded guilty or no contest to a felony or a crime involving

23  moral turpitude or a crime punishable by imprisonment of 1

24  year or more under the law of any state, territory, or

25  country, regardless of whether adjudication of guilt was

26  withheld, may not participate as a director, officer, manager,

27  or employee, agent, contractor, or individual acting in any

28  other capacity for or on behalf of any bail bond agency or

29  office thereof or exercise direct or indirect control in any

30  manner in such agency or office or own shares in any closely

31  held corporation which has any interest in any bail bond


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                                          HB 1327, First Engrossed



  1  business. Such restrictions on engaging in the bail bond

  2  business shall continue to apply during a pending appeal.

  3         (b)  Any person who violates the provisions of

  4  paragraph (a) or any person who knowingly permits a person who

  5  has been convicted of or who has pleaded guilty or no contest

  6  to a crime as described in paragraph (a) to engage in the bail

  7  bond business as prohibited in paragraph (a) commits a felony

  8  of the third degree, punishable as provided in s. 775.082, s.

  9  775.083, or s. 775.084.

10         (c)  Any law enforcement agency, state attorney's

11  office, court clerk, or insurer that is aware that a bail bond

12  agent or, temporary bail bond agent, or runner has been

13  convicted of or who has pleaded guilty or no contest to a

14  crime as described in paragraph (a) shall notify the

15  department of this fact.

16         (d)  Upon the filing of an information or indictment

17  against a bail bond agent or, temporary bail bond agent, or

18  runner, the state attorney or clerk of the circuit court shall

19  immediately furnish the department a certified copy of the

20  information or indictment.

21         (9)(a)  Any person who violates any provisions of

22  paragraph (1)(e)(d), paragraph (1)(f)(e), paragraph (1)(g)(f),

23  paragraph (1)(j)(i), or paragraph (1)(n)(m), or subsection (2)

24  commits a felony of the third degree, punishable as provided

25  in s. 775.082, s. 775.083, or s. 775.084.

26         (b)  Any person who violates the provisions of

27  paragraph (1)(a), paragraph (1)(b), paragraph (1)(c),

28  paragraph (1)(h)(g), paragraph (1)(k)(j), or paragraph

29  (1)(m)(l), paragraph (1)(o), or paragraph (1)(p), subsection

30  (3), subsection (4), or subsection (5) commits a misdemeanor

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                                          HB 1327, First Engrossed



  1  of the first degree, punishable as provided in s. 775.082 or

  2  s. 775.083.

  3         Section 23.  Subsections (1) and (3) of section

  4  648.441, Florida Statutes, are amended to read:

  5         648.441  Furnishing supplies to unlicensed bail bond

  6  agent prohibited; civil liability and penalty.--

  7         (1)  An insurer, managing general agent, bail bond

  8  agent, or temporary bail bond agent, or runner appointed under

  9  this chapter may not furnish to any person any blank forms,

10  applications, stationery, business card, or other supplies to

11  be used in soliciting, negotiating, or effecting bail bonds

12  until such person has received from the department a license

13  to act as a bail bond agent and is appointed by the insurer.

14  This section does not prohibit an unlicensed employee, under

15  the direct supervision and control of a licensed and appointed

16  bail bond agent, from possessing or executing in the bail bond

17  agency, any forms, except for powers of attorney, bond forms,

18  and collateral receipts, while acting within the scope of his

19  or her employment.

20         (3)  Any person who violates this section commits a

21  misdemeanor of the first degree, punishable as provided in s.

22  775.082 or s. 775.083, except that the violator is subject to

23  a fine not to exceed $5,000 in addition to, or in lieu of, any

24  term of imprisonment.

25         Section 24.  Subsections (1), (3), and (6) of section

26  648.442, Florida Statutes, are amended, subsections (8), (9),

27  and (10) are renumbered as subsections (9), (10), and (11),

28  respectively, and a new subsection (8) is added to said

29  section, to read:

30         648.442  Collateral security.--

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                                          HB 1327, First Engrossed



  1         (1)  Collateral security or other indemnity accepted by

  2  a bail bond agent, except a promissory note or an indemnity

  3  agreement, shall be returned upon final termination of

  4  liability on the bond. Such collateral security or other

  5  indemnity required by the bail bond agent must be reasonable

  6  in relation to the amount of the bond. Collateral security may

  7  not be used by the bail bond agent for personal benefit or

  8  gain and must be returned in the same condition as received. A

  9  bail bond agent may accept collateral security in excess of

10  $50,000 cash per bond, provided any amount over $50,000 cash

11  is payable to the insurer in the form of a cashier's check,

12  United States postal money order, certificates of deposit, or

13  wire transfer and is remitted to and held by the insurer. A

14  copy of IRS Form 8300 shall be retained as part of the

15  defendant's file if it is otherwise required. A quitclaim deed

16  for property may not be taken as collateral. Other acceptable

17  forms of security or indemnity may consist of the following:

18         (a)  A promissory note;

19         (b)  An indemnity agreement;

20         (c)  A real property mortgage in the name of the

21  insurer;

22         (d)  Any Uniform Commercial Code filing; or

23         (e)  Any other type of security approved by the

24  department. The department may approve other security only if,

25  after considering the liquidity and other characteristics of

26  the security, it determines that the security is of a type

27  which increases the probability that the defendant will in

28  fact appear in court or increases the probability that the

29  defendant will be subsequently apprehended by the bail bond

30  agent.

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                                          HB 1327, First Engrossed



  1         (3)  All Such collateral security shall be received and

  2  held in the insurer's name by the bail bond agent in a

  3  fiduciary capacity and, prior to any forfeiture of bail, shall

  4  be kept separate and apart from any other funds or assets of

  5  such bail bond agent. When collateral security in excess of

  6  $5,000 cash or its equivalent is received by a bail bond

  7  agent, the entire amount shall be immediately forwarded to the

  8  insurer or managing general agent. Such Collateral security

  9  may be placed in an interest-bearing account to accrue to the

10  benefit of the person giving the collateral security, and the

11  bail bond agent, insurer, or managing general agent may not

12  make any pecuniary gain on the collateral security deposited.

13  Any such account shall be in a depository office of a

14  financial institution located in this state. The insurer shall

15  be liable for all collateral received. If the bail bond agent

16  or managing general agent fails to return the collateral to

17  the indemnitor upon final termination of liability on the

18  bond, the surety shall be liable for the collateral and shall

19  return the actual collateral to the indemnitor or, in the

20  event that the surety cannot locate the collateral, the surety

21  shall pay the indemnitor pursuant to the provisions of this

22  section.

23         (6)  The bail bond agent or insurer must convert the

24  collateral to cash within a reasonable period of time and

25  return that which is in excess of the face value of the bond

26  minus the actual and reasonable expenses of converting the

27  collateral to cash.  In no event shall these expenses exceed

28  20 10 percent of the face value of the bond.  However, upon

29  motion and proof that the actual, reasonable expenses exceed

30  20 10 percent, the court may allow recovery of the full amount

31  of such actual, reasonable expenses. If there is a remission


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                                          HB 1327, First Engrossed



  1  of a forfeiture, which had required the surety to pay the bond

  2  to the court, the surety shall pay to the indemnitor the value

  3  of any collateral received for the bond, minus any actual

  4  expenses and costs permitted herein.

  5         (8)  Prior to the appointment of a bail bond agent who

  6  is currently or was previously appointed by another insurer,

  7  the bail bond agent shall file with the department a sworn and

  8  notarized affidavit, on a form prescribed by the department,

  9  stating that:

10         (a)  There has been no loss, misappropriation,

11  conversion, or theft of any collateral being held by the bail

12  bond agent in trust for any insurer by which the bail bond

13  agent is currently or was previously appointed.

14         (b)  All collateral being held in trust by the bail

15  bond agent and all bail bond records for any insurer by which

16  the bail bond agent is currently or was previously appointed

17  shall be available for immediate audit and inspection by the

18  department, the insurer, or the managing general agent for the

19  insurer and shall, upon demand of the department or insurer,

20  be transmitted to the insurer for whom the collateral is being

21  held in trust.

22         Section 25.  Section 648.4425, Florida Statutes, is

23  amended to read:

24         648.4425  Notice.--

25         (1)  Upon issuing a bond, the bail bond agent shall

26  provide to the principal and, if applicable, to the party

27  rendering collateral or indemnifying the surety principal an

28  informational notice which shall include:

29         (a)  A statement noting with particularity the

30  restrictions, if any, placed on the principal as a condition

31  of the bond;


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                                          HB 1327, First Engrossed



  1         (b)  A statement of the bail bond agent's powers

  2  relating to the cancellation of the bond and recommitment of

  3  the principal; and

  4         (c)  The name, address, and telephone number of the

  5  department for complaints or inquiries.

  6         (2)  A bail bond agent who surrenders or recommits a

  7  defendant shall provide the defendant with a statement of

  8  surrender on a form prescribed by the department. The

  9  statement shall state the reason for surrender and shall be

10  signed by the bail bond agent. The statement shall be attached

11  to the surrender form and one copy shall be provided to the

12  defendant and one copy shall be maintained by the agent in the

13  defendant's file.

14         (3)(2)  The department shall prescribe forms to

15  administer this section.

16         Section 26.  Subsection (4) of section 648.45, Florida

17  Statutes, is amended, and paragraphs (o) and (p) are added to

18  subsection (2) of said section, to read:

19         648.45  Actions against a licensee; suspension or

20  revocation of eligibility to hold a license.--

21         (2)  The department shall deny, suspend, revoke, or

22  refuse to renew any license or appointment issued under this

23  chapter or the insurance code, and it shall suspend or revoke

24  the eligibility of any person to hold a license or appointment

25  under this chapter or the insurance code, for any violation of

26  the laws of this state relating to bail or any violation of

27  the insurance code or for any of the following causes:

28         (o)1.  Having made or filed a report or record that the

29  licensee knows to be false or misleading;

30         2.  Having willfully failed to file a report or record

31  required by state or federal law;


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                                          HB 1327, First Engrossed



  1         3.  Having willfully impeded or obstructed such filing;

  2  or

  3         4.  Having induced another person to impede or obstruct

  4  such filing.

  5

  6  Such reports or records shall include only those that are

  7  signed in the capacity of a licensed agent.

  8         (p)  Having pursued a course of conduct or practice

  9  that indicates that he or she is incompetent, negligent,

10  dishonest, or untruthful, or that the money, property,

11  transactions, and rights of clients may not safely be

12  entrusted to him or her.

13         (4)  Any licensee found to have violated s.

14  648.44(1)(b), (d)(c), or (i)(h) shall, at a minimum, be

15  suspended for a period of 3 months. A greater penalty,

16  including revocation, shall be imposed if there is a willful

17  or repeated violation of s. 648.44(1)(b), (d)(c), or (i)(h),

18  or the licensee has committed other violations of this

19  chapter.

20         Section 27.  Section 648.50, Florida Statutes, is

21  amended to read:

22         648.50  Effect of suspension, revocation upon

23  associated licenses and licensees.--

24         (1)  Upon the suspension, revocation, or refusal to

25  renew or continue any license or appointment or the

26  eligibility to hold a license or appointment of a bail bond

27  agent or, temporary bail bond agent, or runner, the department

28  shall at the same time likewise suspend or revoke all other

29  licenses or appointments and the eligibility to hold any other

30  such licenses or appointments which may be held by the

31  licensee under the Florida Insurance Code.


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                                          HB 1327, First Engrossed



  1         (2)  In case of the suspension or revocation of the

  2  license or appointment, or the eligibility to hold a license

  3  or appointment, of any bail bond agent, the license,

  4  appointment, or eligibility of any and all bail bond agents

  5  who are members of a bail bond agency, whether incorporated or

  6  unincorporated, and any and all temporary bail bond agents or

  7  runners employed by such bail bond agency, who knowingly are

  8  parties to the act which formed the ground for the suspension

  9  or revocation may likewise be suspended or revoked.

10         (3)  No person whose license as a bail bond agent or,

11  temporary bail bond agent, or runner has been revoked or

12  suspended shall be employed by any bail bond agent, have any

13  ownership interest in any business involving bail bonds, or

14  have any financial interest of any type in any bail bond

15  business during the period of revocation or suspension.

16         Section 28.  Subsection (1) of section 648.52, Florida

17  Statutes, is amended to read:

18         648.52  Administrative fine.--

19         (1)  If, pursuant to the procedure described in s.

20  648.46, the department finds that one or more causes exist for

21  the suspension of, revocation of, or refusal to renew or

22  continue any license or appointment issued under this chapter,

23  the department may, in its discretion, in lieu of or in

24  addition to such suspension, revocation, or refusal, and

25  except on a second offense, impose upon the licensee an

26  administrative penalty in an amount up to $5,000 $500 or, if

27  the department has found willful misconduct or willful

28  violation on the part of the licensee, $20,000 $2,500. The

29  administrative penalty may, in the discretion of the

30  department, be increased by an amount equal to any commissions

31  or other pecuniary benefits received by or accruing to the


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                                          HB 1327, First Engrossed



  1  credit of the licensee in connection with any transaction

  2  related to the grounds for suspension, revocation, or refusal.

  3         Section 29.  Section 648.525, Florida Statutes, is

  4  created to read:

  5         648.525  Civil assessment.--

  6         (1)  The department may initiate a civil administrative

  7  proceeding against a licensee under this chapter who fails to

  8  comply with requirements of this chapter applicable to the

  9  solicitation of bail bond business.

10         (2)  The proceeding shall be subject to proof by the

11  preponderance of the evidence. Upon a finding that a licensee

12  has failed to properly comply, an assessment of $5,000 shall

13  be ordered for each act of improper solicitation, which

14  assessment shall be payable within 30 days after the date of

15  the final order.

16         (3)  The civil assessment pursuant to this section is a

17  civil remedy for conduct that harms the consuming public and

18  that is considered an unfair method of competition, and is not

19  considered a criminal penalty. This section is in addition to

20  other actions authorized in this chapter.

21         Section 30.  Section 648.571, Florida Statutes, is

22  amended to read:

23         648.571  Failure to return collateral; penalty.--

24         (1)  A bail bond agent who has taken collateral or an

25  insurer or managing general agent who holds collateral as

26  security for a bail bond shall, upon demand, make a written

27  request for a discharge of the bond to be delivered to the

28  surety or the agent of the surety. A copy of the written

29  request for discharge shall be given to the indemnitor or the

30  person making the request for the collateral and a copy shall

31  be maintained in the bail bond agent's file. If a discharge is


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                                          HB 1327, First Engrossed



  1  provided to the surety or the agent of the surety pursuant to

  2  chapter 903, the collateral shall be returned to the

  3  indemnitor within 21 days of said discharge being provided.

  4         (2)  Upon demand, following the written request for

  5  discharge and upon diligent inquiry by the surety or the agent

  6  of the surety to determine that the bond has been discharged,

  7  failure of the court to provide a written discharge to the

  8  surety or the agent of the surety pursuant to chapter 903

  9  within 7 days, shall cause the cancellation of the bond by

10  operation of law and collateral shall be returned to the

11  indemnitor within 21 days of the written request for

12  discharge.

13         (3)(a)  Fees or other charges of any nature other than

14  as outlined in this chapter or by rule of the department may

15  not be deducted from the collateral due.

16         (b)1.  The bail bond agent may charge the fee imposed

17  in connection with the use of a credit card for payment of

18  collateral if the fee is clearly shown on the collateral

19  receipt and is acknowledged by the person tendering the credit

20  card.

21         2.  The prevailing schedule of credit card fees shall

22  be conspicuously posted in the lobby of the bail bond agency

23  and a copy shall be provided to the person tendering the

24  credit card.

25         (c)  However, Allowable expenses incurred in the

26  apprehension of the defendant because of a forfeiture of bond

27  or judgment under s. 903.29 may be deducted if such expenses

28  are accounted for. Failure to return collateral under these

29  terms shall be punishable:

30         1.(1)  In the event the collateral is of a value of

31  less than $100, as provided in s. 775.082(4)(a).


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                                          HB 1327, First Engrossed



  1         2.(2)  In the event the collateral is of a value of

  2  $100 or more, as provided in s. 775.082(3)(d).

  3         3.(3)  In the event the collateral is of a value of

  4  $1,500 or more, as provided in s. 775.082(3)(c).

  5         4.(4)  In the event the collateral is of a value of

  6  $10,000 or more, as provided in s. 775.082(3)(b).

  7         (4)  In addition to the criminal penalties provided in

  8  paragraph (3)(c) and any other penalties provided in this

  9  chapter, the department shall impose an administrative fine of

10  five times the dollar amount of the collateral against any

11  person violating the provisions of this section.

12         Section 31.  Subsection (21) of section 624.501,

13  Florida Statutes, is amended to read:

14         624.501  Filing, license, appointment, and

15  miscellaneous fees.--The department shall collect in advance,

16  and persons so served shall pay to it in advance, fees,

17  licenses, and miscellaneous charges as follows:

18         (21)  Limited surety agent or, professional bail bond

19  agent, or runner as defined in s. 648.25, each agent and each

20  insurer represented. Original appointment and biennial renewal

21  or continuation thereof, each agent or insurer, whichever is

22  applicable:

23         Appointment fee..................................$44.00

24         State tax.........................................24.00

25         County tax........................................12.00

26  Total...................................................$80.00

27         Section 32.  Paragraph (l) of subsection (1) of section

28  624.523, Florida Statutes, is amended to read:

29         624.523  Insurance Commissioner's Regulatory Trust

30  Fund.--

31


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                                          HB 1327, First Engrossed



  1         (1)  There is created in the State Treasury a trust

  2  fund designated "Insurance Commissioner's Regulatory Trust

  3  Fund" to which shall be credited all payments received on

  4  account of the following items:

  5         (l)  All sums received under s. 648.27(6) (bail bond

  6  agent, limited surety agent or runner, continuation fee), the

  7  "appointment fee" portion of any license or permit provided

  8  for under s. 648.31, and the application fees provided for

  9  under ss. 648.34(3) and 648.37(3).

10         Section 33.  Subsection (4) of section 843.021, Florida

11  Statutes, is amended to read:

12         843.021  Unlawful possession of a concealed handcuff

13  key.--

14         (4)(a)  It is a defense to a charge of violating this

15  section that the person in custody and in possession of a

16  concealed handcuff key is:

17         1.  A federal, state, or local law enforcement officer,

18  including a reserve or auxiliary officer, a licensed security

19  officer, or a private investigator as defined in s. 493.6101;

20  or

21         2.  A professional bail bond agent, temporary bail bond

22  agent, runner, or limited surety agent as defined in s.

23  648.25.

24         (b)  However, the defense is not available to any

25  officer, investigator, or agent, or runner listed in this

26  subsection if the officer, investigator, agent, or runner,

27  immediately upon being placed in custody, fails to actually

28  and effectively disclose possession of the concealed handcuff

29  key.

30         Section 34.  Section 648.37, Florida Statutes, is

31  repealed.


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                                          HB 1327, First Engrossed



  1         Section 35.  If any provision of this act or the

  2  application thereof to any person or circumstance is held

  3  invalid, the invalidity does not affect other provisions or

  4  applications of the act which can be given effect without the

  5  invalid provision or application, and to this end the

  6  provisions of this act are declared severable.

  7         Section 36.  This act shall take effect July 1, 2002.

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