8.1 Bail Bond Licensing
CITY OF SALIN A
REQUEST FOR CITY COMMISSION ACTION
DATE
6/23/03
TIME
4:00 P.M.
AGENDA SECTION:
NO.
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
8
CITY MANAGER
ITEM
NO.
1
BY:
Jason Gage~
BY: ¿:::>~
Item:
Ordinance 03-10152, amending Chapter 23, Article II, Sections 23-16 through 23-37 of the Salina Code
pertaining to bail bond agents and companies in the city of Salina.
Backaround:
Bail bond agents and companies take responsibility for insuring that court defendants desiring release
from incarceration appear in court as required by the Municipal Judge. Cash bonding is a common tool by
the court system to leverage future court appearances. In some instances, a defendant may post their
own bond. In lieu of this, they may pay for the services of a locally licensed bonding company or agent to
take on their financial bonding obligation. When this happens, the bonding company takes responsibility
to insure the defendant appears as required.
The current ordinance related to the licensure of bail bond agents and companies that serve the Municipal
Court has been in place for six years. It provides necessary procedures for becoming a bonding agent or
company and establishes licensure guidelines. For some time, staff has felt this ordinance has lacked
clarity in the sections related to approval, denial, suspension, restriction and revocation. As a result, staff
has provided a revised ordinance for City Commission consideration which we believe better clarifies
these issues. The proposed ordinance includes the following changes:
. Definitions of "crime", "licensee" and "person" as these phrases are used throughout the ordinance
. Clarification on when an unlicensed person is "acting on behalf' of a bonding company to insure that
an unlicensed person cannot enter restricted areas, solicit business or refer business for a bail bond
company outside of the current ordinance's restrictions on these activities by licensed agents
. Clarification of language regarding background information needed for application review and related
reporting requirements of an active licensee
. Clarification of the process used to review bail bond agent and company applications for purposes of
approval or denial
. Clarification of the processes for considering the suspension, restriction or revocation of a bail bond
license; including reconciliation between the administrative and judicial review procedures, and
additional language related to due process.
. Clarification regarding the method of appeal to the governing body
A draft copy of the amended ordinance was provided to all licensed bail bond agents in Salina to provide
them with an opportunity to review the proposed changes and provide feedback. We received one initial
concern based on a misinterpretation of the language. This was quickly remedied by interpretive
assistance from staff. These proposed recommendations are a result of input by numerous parties from
both inside and outside the local judicial system. While basically "housekeeping" in nature, Staff believes
the recommended changes provide needed clarification on bail bond agent and company licensure
requirements that will benefit all parties.
Recommendation:
Staff recommends approval of Ordinance 03-10152, amending Chapter 23, Article II, Sections 23-16
through 23-37 of the Salina Code pertaining to bail bond agents and companies.
Chapter 23 MUNICIPAL COURT*
ARTICLE I. IN GENERAL
Sec. 23-1. Creation.
There is hereby created the municipal court which is created pursuant to and governed by
the provisions ofK.S.A. Chapter 12, Articles 41 through 47, inclusive.
Secs. 23-2--23-15. Reserved.
ARTICLE II. BAIL BOND AGENTS AND COMPANIES
DIVISION 1. GENERALLY
Sec. 23-16. Definitions.
The following word, terms or phrases, as used in this article, shall have the following
meanmgs:
Bail bond agent. A person who acts in writing bonds on behalf of a bail bond company.
Bail bond company. Any person or firm, other than an insurance company, who issues
bail bonds for compensation.
Crime. A crime is an act or omission defined by law and for which, upon conviction,
a sentence of death, imprisonment or fine, or both imprisonment and fine is
authorized, or in the case of a traffic infraction, a fine is authorized. Crimes are
classified as felonies, misdemeanors and traffic infractions.
Firm. A firm, partnership, association of persons, corporation, limited liability company,
orgaflization, or any other group acting as a ooit.
Insurance agent. Any person licensed by the Kansas State Insurance Commissioner to
write surety bonds in the State of Kansas and who represents an authorized insurance
company.
Insurance company. A company authorized by the Kansas State Insurance Commissioner
to write surety bonds.
Licensee. Any licensed bail bond agent or bail bond company.
Person. A firm, partnership, association of persons, corporation, organization or
any other group acting as a unit, as well as an individual.
Sec. 23-17. Entering, loitering, soliciting business at the police department, Saline County
jail, municipal court or district court.
It shall be unlawful for any licensee person, whether acting on the person's own
behalf or through an agent or representative:
(1) To enter the police department, Saline County jail, municipal court or for the
purpose of obtaining employment as a bail bond agent without having been called
by a person in custody or some other person acting on behalf of the person in
custody.
To loiter in the police department, Saline County jail, municipal court or district
court. Such licensee shall conduct business as quickly as possible and leave the
premises immediately upon completion.
To personally or otherwise solicit or refer business in, at or near the police
department, Saline County jail, municipal court or district court.
(2)
(3)
Sec. 23-18. Attorney referral.
It shall be unlawful for any licensee:
(1) To recommend, directly or indirectly, any lawyer to a client for whom a bond has
been executed.
To refuse to issue a bail bond unless a particular attorney is retained.
To offer any legal advice to a client, predict the outcome of a case to a client, or
advise a client to appeal a decision of the court.
To speak with an attorney on behalf of a client.
(2)
(3)
(4)
Sec. 23-19. Referral of bail bond business for compensation prohibited.
It shall be unlawful for any licensee to directly or indirectly give or promise to give any
compensation to secure, send or refer bail bond business to the licensee, unless such person is
licensed as an agent of the licensee.
DIVISION 2. LICENSES*
Sec. 23-20. Bail bond company license; required.
It shall be unlawful for any person or firm, other than an insurance company authorized
to do business by the Kansas State Insurance Commissioner, to demand or receive compensation
for providing surety on any bail bond, recognizance bond, appeal bond or other court bond
unless such person or firm is licensed as a bail bond company as provided by this article.
Sec. 23-21. Same--Application.
Any person or firm desiring to secure a license for a bail bond company shall file with the
city clerk an application provided by the city clerk. Such application shall contain the following
information and any other information deemed necessary by the city clerk:
(1)
(2)
~
(4)
(5)
(6)
(7)
The business name, address, phone number and type of business entity.
The name, home address, home phone number and date of birth for each owner.
A statement from each owner listing any criminal conviction, including traffic
infractions within five (5) years of the application date. f-elony eOlwietions or
non traffie misdemeanor eonvietions ,¡¡¡thin fiye (5) years of the application date.
A statement from each owner listing any pending criminal charge, including
traffic infractions. non traffic criminal eharges.
A statement from each owner listing any criminal conviction for which they
are currently on diversion, probation or parole.
A statement from each owner listing any unsatisfied forfeiture or judgment
thereon entered on any bail bond written by the owner or the firm in any court.
A ten thousand dollar ($10,000.00) irrevocable letter of credit as provided in
sections 23-22.
Sec. 23-22. Bail bond company license; Irrevocable letter of credit.
The applicant shall use as security for issuing bail bonds a bank issued irrevocable letter
of credit in a form approved by the city clerk, with the following minimum requirements:
(1) Shall show the City of Salina only as beneficiary.
(2) Shall have a minimum value often thousand dollars ($10,000.00).
(3) Shall expire no sooner than March 31 following the licensing period.
(4) Shall contain provisions that the lending agency must give the city clerk thirty
(30) days notice prior to cancellation.
Shall contain provisions allowing the City of Salina to collect on any open bonds
the licensee may have should the letter of credit not be renewed, as outlined in
subsection (c) below.
If the city must make demand upon the letter of credit such that the amount secured by
the letter falls below ten thousand dollars ($10,000.00), the licensee shall have to provide
to the city clerk written evidence from the issuing bank that credit of a minimum value of
ten thousand dollars ($10,000.00) has been restored. Until such time that the letter of
credit is restored, the bail bonding company shall be removed from the bonding list and
unable to write any new bonds.
If the applicant has any open bonds and fails to renew the letter of credit, whether or not
the applicant is still operating as a bail bonding company, the city shall, no sooner than
one week prior to the expiration of the letter of credit, collect on the letter of credit for the
amount of the open bonds and hold the funds as a cash bond. Any funds not needed to
pay forfeitures will be returned to the bonding company once the bonding company has
been released from any liability. Should a company no longer desire to operate as a bail
bonding company and not wish to revoke any open bonds or have the city collect on the
letter of credit, a letter of credit may be given for the amount of the bonds still open. Such
reduced amount letter of credit shall not expire for a minimum of three (3) months.
Should there still be open bonds upon its expiration, the same procedures as outlined
above will be followed.
(a)
(b)
(c)
(5)
Sec. 23-23. Bail bond agent license; required.
It shall be unlawful for any person who acts in writing bonds as an employee or owner of
a bail bond company to do so unless licensed as a bail bond agent as provided by this article.
Sec. 23-24. Same--Application.
Any person desiring to secure a license as a bail bond agent shall file, with the city clerk,
an application provided by the city clerk. Such application shall contain the following
information and any other information deemed necessary by the city clerk:
(1) The name, home address and home phone number of the applicant.
(2) The applicant's date of birth.
(3) A statement listing any criminal felony convictions, including traffic
infractions, or non traffic misdemeanor convictions of any crime within five (5)
years of the application date.
A statement listing any pending criminal charge including traffic infractions.
non traffie eriminal charges.
A statement from each owner listing any criminal conviction for which they
are currently on diversion, probation or parole.
Name, address and phone number of the bail bond company where the agent will
be employed.
(4)
(5)
(6)
If the application for a license is in proper form and accompanied by the license fee as
prescribed in section 2-2, the police chief, city prosecutor and the city clerk, or their
representatives, shall cause an investigation to be made of the facts set forth in the
application and of the record of such applicant in the municipal court and the
district court of the county, and any other courts in which the chief of police may
have reason to believe the applicant has a record. rcwie'.y the application.
No license shall be issued to:
(1) A person who, within five (5) years prior to the date of the application, has been
convicted of a felony.
A person or firm who shall have any unsatisfied forfeiture or judgment thereon
entered on any bail bond in any court.
A person or firm unless the face value of its letter of credit payable to the city
equals a minimum often thousand dollars ($10,000.00).
(4) A Hfm person, unless all the owners shall be qualified to obtain a license.
If an applicant:
1) is currently on diversion, probation or parole for any criminal offense other
than a traffic infraction;
has criminal charges other than a traffic infraction pending in any court;
within the last five (5) years has been convicted for a criminal offense other
than a traffic infraction; or
has previously had bail bond company or bail bond agent license revoked;
then
(a)
(b)
(2)
(3)
(c)
2)
3)
4)
(d)
, ':lithin fi'/e (5) years prior to the date of the application, been convicted for a, non traffic
misdemeanor, either a felony or a non traffic misdemeanor, the police chief, city
prosecutor, and the city clerk shall determine whether the public safety and general
welfare are served by the issuance of a license to the applicant and shall report to the
city manager all information secured from the investigation relative to the
applicant's record. If not, the application shall be denied.
If the application is approved, the city clerk shall issue a license to the applicant. If the
application for the lieeRse is denied, the license fee shall be returned.
The city manager shall consider the application for a license, the report and
recommendation, and any other relevant information received concerning the
applicant. If satisfied with the application, the city manager may approve the
application.
If the application is approved, the city clerk shall issue a license to the applicant. If
the application for the license is denied, the license fee shall be returned.
An denial of the application by the city manager may be appealed to the
hoard of eommissioBers by filing a notice of appeal with the city clerk in
accordance with Section 23-33.
(d)
(e)
(f)
Sec. 23-26. Fingerprinting.
All applicants for bail bond company or agent licenses shall be fingerprinted. The cost of
the fingerprinting is the responsibility of the applicant.
Sec. 23-27. Photo-identification badge.
Upon the issuance of a bail bond agent license, the city clerk shall issue a photo-
identification badge to the licensee, which shall be worn by the licensee in such a way as to be
conspicuous at all times when the licensee is acting as a bail bond agent. The licensee shall
return the badge to the city clerk upon the expiration or revocation of the license.
Sec. 23-28. Notification of certain events.
All licensees under this article shall be required to immediately report to the city clerk:
(1) Any criminal charge, including traffic infractions filed against the licensee.
nOR traffic criminal charge filed against the licensee.
Any criminal conviction, including traffic infractions against the licensee.
non traffic criminal eonyictioR against the licensee.
Any unsatisfied forfeiture or judgment thereon entered on any bail bond in any
court.
The city clerk shall administratively develop a system whereby the Salina Municipal
Court and the Saline County District Court shall be advised of any information reported under
this section.
(2)
(3)
Sec. 23-29. Judicial suspension or restriction.
Pending a formal hearing and final determination by the city manager, the municipal
effiHt judge shall have the authority to temporarily suspend or restrict the authority of any
licensee under this article from te issueing any bond if the municipal judge determines that
continued exercise of licensee's authority adversely impacts the effective administration of
the court. the lieensee is eharged with a felony or non traffie misdemeaÐ:or, if a judgment on a
bond in'¡olving the lice1'lsee is l.mpa:id, or if a:ny other eireumsttmce exists whieh causes the
municipal cow1 judge to determine that such suspension or restriction best serves the interests of
the eourt. No judgment shall be rendered regarding the temporary suspension or
restriction of the bonding authority of a licensee without first providing an opportunity for
the licensee to be heard by the municipal judge. Immediately following a judgment, both
the city manager and the licensee shall be provided written notification of the specific
judgment, findings supporting the judgment and the municipal judge's recommendation
for further action.
.....
Sec. 23-30. Administrative suspension or revocation,
(a) Any license issued under this article may be suspended, restricted or revoked by the city
manager, after notice and hearing, for any ofthe following reasons:
(1) If the licensee fraudulently obtained the license by giving false information in the
application.
If the licensee has been convieted of yiolating violated any of the terms of this
article.
If the licensee has become ineligible to obtain a license under the provisions of
this article.
If the licensee fails to make a timely report to the city clerk as required by section
23-28.
If the licensee charges fees in excess of the maximum fee in the fee schedule
provided by the licensee in section 23-34(b).
If a judgment entered in Salina Municipal Court on a bond involving a licensee is
unpaid.
If a licensee fails to restore the required letter of credit as provided in section 23-
22.
If the municipal judge determines that continued exercise of licensee's
authority adversely impacts the effective administration of the court.
(b) The city manager may immediately suspend, restrict, or revoke any license, pending the
a restriction, suspension or revocation hearing if the public safety or welfare is best served by
such action, or if the licensee has repeatedly failed to properly serve the public interest in
carrying out the duties of either a bail bond company or bail bond agent in accordance
with this article. a temporary suspension. A hearing shall be set not later than ten (10)
working days from the date of receipt of the appellant's written statement or written
recommendation from the municipal judge. Notice of a hearing for restriction, suspension
or revocation of a license issued pursuant to this article shall be provided in writing and
shall set forth specifically the grounds for the proposed action, and the time and place of
the hearing. Notice shall be mailed, postage prepaid, to the licensee at the address shown on
the license application or at the last known address of the licensee. Following the hearing,
the licensee shall be notified in writing of the decision, including any restriction guidelines,
(2)
(3)
(4)
(5)
(6)
(7)
(8)
duration of any suspension or any prerequisites to reapplication imposed in conjunction
with any revocation.
See. 23 31. SuspeBsiøB ør revøeatiøB hy høard øf eity eømmissiøBers.
Any license issued ooder this article may be suspended or re'loked by the board of city
commissioners if, after flotice afld hearing, it is determined that the licensee has repeatedly failed
to properly serve the public interest in carrying out the dmies of either a bail bond company or
bail bond agent in accordance with this article.
See. 23 32. Nøtiee, heariBg, aDd deeisiøB.
Notice of a hearing for suspension or revocation of a license issued pursuant to this
article shall be pro':ided in '.vriting and shall set forth specifically the grounds for the proposed
suspension or revocation and the time and place of the hearing. Notice shall be mailed, postage
prepaid, to the licensee at the address shovm on the license application or at the last knovm
address of the licensee. Following the hearing, the licensee shall be notified in ':lfiting of the
decision, including the duration of any suspension or any prerequisites to reapplication imposed
in conjunction vt'ith any reyocation.
Sec. 23-33. Appeals to governing body.
(a) ,AJlY applicant aggrieyed by the decision of the city clerk to deny a license applied for
under this artiele shaH have the right to appeal the decision to the city manager within ten
(10) days after the notice of the decision has been mailed to the applicant.
Any applicant or licensee person or firm aggrieved by the action or decision of the city
manager to deny, suspend or revoke a license under this article shall have the right to
appeal such action or decision to the governing body board of city commissioners within
ten (10) days after the notice of the action or decision has been mailed to the person or
firm.
An appeal to eitheF the city manager or governing body board of city commissioners
shall be taken by filing with the city clerk a written statement setting forth the grounds for
the appeal.
A hearing shall be set not later than twenty (20) working days from the date of receipt of
the appellant's written statement.
Notice of the time and place of the hearing shall be given to the appellant in the same
manner as provided for the mailing of notice of hearing provided in section 23-~30(a)
above. The decision of the governing body board of city commissioners on the appeal
shall be final and binding on all parties concerned. Any denial of an application by the
governing body shall be subject to appeal pursuant to then applicable state law.
(b)
(c)
(d)
(e)
Sec. 23-34. List of licensees and fee schedules; posting.
(a) The city clerk shall maintain a list of persons licensed under the provisions of this article
and their telephone numbers. At any time the list of persons licensed changes, the city
clerk shall provide the Saline County sheriff with a copy of the revised list for posting in
such manner and in such locations as the sheriff designates.
Sec. 23-35. Insurance agent/company; registration.
(a) Any Kansas licensed insurance agent desiring to operate a bail bonding company as a
representative of an underwriting insurance company must register in the office of the
city clerk. On a form provided by the city clerk, the agent shall be required to provide the
following:
(1) Name, address and phone number of agent.
(2) Name, contact person, address and phone number of insurance agency.
(3) Copies of power of attorney and sample bond form.
(4) Proof that the insurance company is authorized by the Kansas Insurance
Commissioner to do business in the state.
Copy of the agent's current Kansas insurance license.
Name, manager name, address and phone number of business if different from (a)
above.
A separate registration form for each agent working under the same company name is
required.
Each insurance agent acting as a bail bond agent shall be required to obtain and wear a
photo identification badge as outlined in section 23-27.
There shall be no license fee assessed for registration under this section, except a fee shall
be charged for the identification badge required by subsection (c) above.
(b)
(b)
(c)
(d)
Each company shall furnish to the city clerk a schedule of the minimum and maximum
fees charged by such licensee. This section shall not be construed as setting the fees of
the licensees and such licensees may charge such fees as they may desire so long as the
fee is within the limits set forth in the schedule of fees furnished by the licensee.
(5)
(6)
Sec. 23-36. Insurance bonds; forfeited.
(a) Any bond provided by an insurance agent shall be due and payable upon the forfeiture
date set by the municipal judge. If an agent fails to pay a forfeited bond within the
allotted time, the city clerk shall contact the underwriting insurance company for
payment.
The city clerk may remove the insurance agent and/or the business from the list of those
authorized to bond, as provided in section 23-34(a), if any forfeited bonds are not paid in
a timely manner.
(b)
Sec. 23-37. Application of general rules regarding licenses.
Unless more specifically provided in this article, the general rules regarding licenses
contained in Chapter 20 of this Code shall also apply to licenses issued pursuant to this article.