Insurance, Administration

Rule R590-196

Bail Bond Surety Fee Standards, Collateral Standards, and Disclosure Form

Notice of Proposed Rule

(Amendment)

DAR File No.: 32879
Filed: 08/12/2009 05:29:44 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being changed to allow bail bondsmen to pass through court or jail processing fees to their clients.

Summary of the rule or change:

The changes to the rule include spelling corrections, change in outlining, and the addition of a pass through fee that allows bondsmen to pass along jail or court processing fees.

State statutory or constitutional authorization for this rule:

• Section 31A-35-104

Anticipated cost or savings to:

the state budget:

The changes to this rule will not change the revenue flow or expenses of the department or state government. It will create a little additional work in the way of form filings made to the department if a bail bond agency adopts the pass through fee allowed in the rule. This however will be minimal and just for a short period of time.

local governments:

The changes to this rule will have no fiscal impact on local governments since it deals solely with the relationship between the department and their licensees, bail bond surety companies, agencies, and agents.

small businesses:

This rule will allow bail bond agencies and agents to pass along a processing fee charged to them by the court or jail. Currently they are unable to pass this cost along to their customers.

persons other than small businesses, businesses, or local governmental entities:

The changes to this rule will have no effect on large businesses. If an agency decides to pass along the court or jail processing fee it will affect the consumer. The processing fees have been around $25. Only a few courts and jails are charging the fee so far.

Compliance costs for affected persons:

Defendants or co-signers to a bail bond may be required to pay around $25 for jail or court processing fees if an agent decides to pass the charge on to their clients.

Comments by the department head on the fiscal impact the rule may have on businesses:

The changes to this rule will allow bail bondsmen to pass along to their clients court and jail processing fees. These fees are around $25 and not all jails or courts are charging them yet.

D. Kent Michie, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/15/2009

This rule may become effective on:

10/22/2009

Authorized by:

Jilene Whitby, Information Specialist

R590. Insurance, Administration.

R590-196. Bail Bond Surety Fee Standards, Collateral Standards, and Disclosure Form.

R590-196-4. Fee Standards.

(1) Initial bail bond fees.

(a) Bail bond premium:

(i) minimum fee: none;

(ii) maximum fee: not to exceed 20% of bond amount.

(b) Document preparation fee may not exceed $20 per set of forms pertaining to one bail bond.

(c) Credit card fee may not exceed 5% of the amount charged to the credit card.

(2) [Other]Additional fees.

(a) These fees are limited to actual and reasonable expenses incurred by the bail bond surety because:

(i) the defendant fails to appear before the court at any designated dates and times;

(ii) the defendant fails to comply with the court order; or

(iii) the defendant or the co-signer fails to comply with the terms of the bail bond agreement and any promissory notes pertaining to that agreement.

(b) Reasonable expense fee for mileage is the Internal Revenue Service standard for business mileage.

(c) Apprehension expenses such as meals, lodging, commercial travel, communications, whether or not the defendant is apprehended, are limited to actual expenses incurred and must be reasonable, i.e., meals at mid-range restaurants, lodging at mid-range hotels, commercial travel in coach class, etc.

(d) Reasonable collateral expense fees:

(i) actual expenses to obtain collateral; and

(ii) storage expenses if in a secured storage area, limited to actual expenses.

(e) A late payment fee of $20 or 5% of the delinquent periodic payment [which ever]whichever is less.

(f) If a fee is charged by the court or the jail to process a bail bond, the actual fee charged may be passed through to the defendant or the co-signer.

R590-196-6. Disclosure Form.

The bail bond surety and its agents will use the following disclosure form or a form that contains similar language.

TABLE

XYZ Bail Bonds Disclosure Form

1234 South 1234 East, Salt Lake City, UT 84444:

801-123-4567 fax: 801-098-7654

Defendant.......................Co-Signer......................

Court...........................Charge.........................

Bond amount $...................Bond number....................

Initial Fees, non-refundable.

....bond premium, maximum: no more than 20%;

 minimum: none.                                         $......

 ....document preparation, not to exceed $20

per set of bond forms.                                  $......

....credit card fee, not to exceed 5% of amount

charged to credit card                                  $......

total initial fees                                      $......



Additional Fees.

     (1) Limited to actual and reasonable expenses required

because the defendant fails to appear before the court at any

designated times, or fails to comply with the court order, or

fails to comply with the terms of the bail bond agreement or

any promissory notes pertaining to that agreement. The following

are some reasonable expense fees:

[     (1)](i) reasonable expense fee for mileage is IRS mileage

reimbursement standard for business miles;

[     (2)](ii) reasonable apprehension expense fees include

meals at mid-range restaurants, lodging at mid-range hotels,

transportation at no more than coach fares; and

[     (3)](iii) reasonable collateral expense fees: actual

expenses to obtain collateral and, actual storage expenses,

if collateral is in a secured storage area.

[     (4)](2) A late payment fee of $20 or 5% of the

delinquent periodic payment [which ever]whichever is less.

     (3) If a fee is charged by the court or the jail to

process a bail bond, the actual fee charged may be passed

through to the defendant or the co-signer.



Grounds for revocation of bond.

     Should the defendant violate any of the following, the

defendant shall be subject to immediate bond revocation and

the defendant, or the co-signer, or both, shall be subject

to all the costs incurred to return the defendant to the court.



Grounds for revocation include the following:

     (a) the defendant or co-signer providing materially false

information on bail bond application;

     (b) the court's increasing the amount of bail beyond sound

underwriting criteria employed by the bail bond agent or bail

bond surety;

     (c) a material and detrimental change in the collateral

posted by the defendant or one acting on defendant's behalf;

     (d) the defendant changes their address or telephone

number or employer without giving reasonable notice to the bail

bond agent or bail bond surety;

     (e) the defendant is arrested for another crime, other

than a minor traffic violation, while on bail;

     (f) the defendant is back in jail in any jurisdiction and

revocations can be served prior to the defendant being released;

     (g) failure by the defendant to appear in court at any

appointed times;

     (h) finding of guilt against the defendant by a court of

competent jurisdiction;

     (i) a request by the co-signer based on reasons (a)

through (h) above. Items (a) through (h) pertain to the

defendant; items (a), (c), (e) (g) and (i) pertain to

co-signers, if any.



Collateral.

     The following has been given as collateral to guarantee

all court appearances of the defendant until the bond is

exonerated:

...............................................................

...............................................................

...............................................................

     The following has been given as collateral to guarantee

payment of bond fees:

...............................................................

...............................................................

     In the event judgment is entered against the surety or the

bonding fee is not paid according to the terms of the bail bond

agreement and its promissory note, if any, following written

notice to the undersigned of such judgment or non-payment, the

undersigned authorize XYZ Bail Bonds to convert the appropriate

collateral to collect the judgment or the unpaid bond fees.

Should proceeds from the sale of the appropriate collateral be

insufficient to cover the outstanding balance due, the defendant,

the co-signer, or both, agree to be personally liable for the

difference. Should proceeds from the sale exceed the

outstanding balance, the difference will be returned to the

depositor of the collateral. The depositor's signature below

constitutes acknowledgment of a Bill of Sale for the

collateral. The depositor accepts this agreement as a bill of

sale for the collateral.



     By signing below I certify that I have read and understand

this disclosure form, the bail bond agreement and its

attached promissory note, if any. I certify under penalty of

perjury that all information given to XYZ Bail Bonds verbally

and in writing on all documents relevant to this bond are true

and accurate. The co-signer agrees that should the co-signer

request XYZ Bail Bonds to revoke the defendant's bond, with or

without probable cause, the co-signer will be responsible to

pay XYZ Bail Bonds and their agents for the time returning

the defendant to jail at the rates stated above in additional

fees. If requested by the co-signer to revoke the bond

without probable cause, the co-signer will be responsible to

reimburse the defendant his bond fees.



Date..............................Defendant....................

Date..............................Co-signer....................

Date..............................Depositor....................

I,......................................., agent of XYZ Bail

Bonds, certify that I have given a copy of all documents

pertaining to this bail bond agreement to the defendant, the

co-signer, the depositor, or any of the above, at the time and

date said bail bond agreement was executed.

Date....................Bail Bond Agent........................

KEY: insurance

Date of Enactment or Last Substantive Amendment: [February 10, 2005]2009

Notice of Continuation: January 7, 2005

Authorizing, and Implemented or Interpreted Law: 31A-35-104